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BlockFi suspends withdrawals

BlockFi had a tough time this past June, floundering after substantial losses in the crypto downturn. They were bailed out by FTX, who extended them a $250 million loan, then shortly after reached a deal that would give them the option to acquire BlockFi, and also extended BlockFi $400 million in revolving credit.

Now, the bailer is the one requiring the bailing, and the possible bailout of FTX by Binance fell through. This means that BlockFi is in a tough and uncertain spot, which is why they announced through Twitter that "until there is further clarity, we are limiting platform activity, including pausing client withdrawals". They also wrote that they had learned about the FTX collapse via Twitter.

BlockFi founder and COO Flori Marquez had tweeted only two days prior, just after the FTX news, that "All BlockFi products are fully operational. BlockFi is an independent business entity. We have a $400MM line of credit from FTX.US (not FTX.com) and will remain an independent entity until at least July 2023. We are processing all client withdrawals."

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