New cryptocurrency platform catches FTX..More crashes on the way from Investing.com

New cryptocurrency platform catches FTX..More crashes on the way from Investing.com
New cryptocurrency platform catches FTX..More crashes on the way from Investing.com

New cryptocurrency platform catches FTX..More crashes on the way from Investing.com

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The first company affected by the FTX crisis became clear: Blockfi is ceasing operations

Investing.com – Among the first companies to be impacted by the stock market crash was cryptocurrency lender Blockfi.

In the statement Blockfi issued on Twitter, it was announced that the company had stopped paying out funds. The statement reported that the company was unable to continue its operations due to the uncertainty of FTX’s status.

In July, Blockfi signed a deal with FTX.US that included offering a $400 million line of credit along with an option for parent company FTX to buy the company for $280 million.

In addition to this development, Blockfi has announced that US banking partner Silvergate has postponed the transfers it was scheduled to make today until November 14.

FTX.US has issued a warning that it may suspend its transactions

In his apology statement yesterday, the CEO of FTX said there is no problem with the US arm of FTX.US and all transactions are proceeding normally. However, recent developments suggest that the crisis has also hit FTX.US. The platform’s homepage states: “Trading on FTX US may cease in a few days. Please close open positions. Withdrawals remain open. There is a warning notice stating “We will continue to update.”

Coming back to the Blockfi-related development, there are rumors in the first comments after the company went out of business that Blockfi will keep all its clients’ assets on the FTX platform. Additionally, it was reported, citing unidentified sources, that Blockfi has reached an agreement with a consulting firm to manage a possible bankruptcy proceeding.

Furthermore, the fact that FTX.US opened a $400 million line of credit to Blockfi is clear evidence that the US stock market is also going through a financial crisis.

Written by Jonny Chaims


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