Crypto Lender BlockFi Suspends Withdrawals in FTX Contagion
- BlockFi cites a ‘lack of clarity’ over FTX status for the move
- Company asks customers to refrain from depositing funds
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The crisis sparked by the collapse of Sam Bankman-Fried’s FTX crypto empire ensnared BlockFi, a troubled digital-asset lender once worth $3 billion but which has now limited activity on its platform.
BlockFi on Twitter said it will pause client withdrawals, citing “a lack of clarity” over the status of onetime savior FTX US as well as the uncertainty afflicting FTX.com and sister trading house Alameda Research.