BlockFi has responded to the controversy surrounding FTX and its reported ties to struggling cryptocurrency exchanges with a recent statement to users.
The crypto firm has denied claims that most of its assets are in FTX, describing the rumors as “false.” BlockFi has admitted that it has “substantial exposure” to the exchange.
This exposure includes Alameda’s debt to BlockFi, assets held at FTX.com, and unused amounts from FTX US’ credit line.
FTX US, which was not originally envisioned to be involved in financial relief, has also been named at the recent FTX. filing for bankruptcy.
When considering the next course of action, the BlockFi team promised to communicate with users through official channels and consider all strategic options.
The BlockFi team made sure there was enough liquidity to explore all options and hired external advisors such as Haynes and Boone to help navigate the company’s next steps.
Additionally, BlockFi has confirmed that it is in contact with its partners and plans to provide credit card program details directly if required. Additionally, the team revealed how they’ve worked hard to secure BlockFi.
“We are doing our utmost to be transparent about our decisions related to suspensions, products and platform activities in order to quickly respond to this rapidly changing situation.”
Additional Notes on FTX and BlockFi
BlockFi recently said it can’t go ahead Last week we were doing business as usual during the FTX crisis.
— BlockFi (@BlockFi) November 11, 2022
2022 will be full of ups and downs for BlockFi, to some extent. Earlier this year, cryptocurrency lenders were hit hard by the bankruptcy issues of Celsius and Voyager.Then, in July, the company life line to FTX in the form of a $250 million credit facility.