FTX fallout continues: BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits

In an official replace despatched to purchasers on Nov 14, BlockFi admitted to having “vital publicity” to FTX and its affiliated firms, however insisted it had “the required liquidity to discover all choices”. The information got here as considerably of a shock since on Nov. 8, BlockFi’s founder and chief working officer, Flori Marquez, assured customers in a Twitter thread that each one BlockFi merchandise have been “totally operational” as a result of it had a $400 million line of credit score from FTX US, which is a separate entity from FTX, the worldwide entity affected by the liquidity crunch.

Associated: FTX owned crypto change Liquid halts all withdrawals

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Within the upcoming weeks, it could come as no shock to study that many extra firms have been affected by FTX’s collapse. On Nov 15, Crypto lending platform SALT additionally disclosed that it might pause withdrawals and deposits to its platform “efficient instantly” as a result of “the collapse of FTX has impacted our enterprise”, in keeping with an e mail despatched to its purchasers.

In an e mail captured in a tweet circulating on-line, the corporate shared, “Till we’re capable of decide the extent of this affect with particular particulars that we really feel assured are factually correct, now we have paused deposits and withdrawals on the Salt platform instantly.”

Shawn Owen, the CEO of SALT denied allegations that this can be a sign his firm was “going bust” nevertheless, stating “We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to verify that non[e] of our counter events have any extra dangers in order that we will proceed with most warning with all efforts directed at not going bust. Extra information quickly.”

We didn’t publish this as a discover of going bust. We’re pausing to take care of the autumn out of FTX and to verify that non of our counter events have any extra dangers in order that we will proceed with most warning with all efforts directed at not going bust. Extra information quickly.

— Shawn Owen (@Shawn_OwenJ) November 15, 2022

On Nov. 15, Cointelegraph reported that the Japanese cryptocurrency change Liquid halted withdrawals amid the continuing disaster amid centralized crypto exchanges. The FTX-owned crypto change Liquid took to Twitter to formally announce a suspension of fiat and crypto withdrawals on its Liquid International platform.

Solely a day after denying that almost all of its property have been held on FTX earlier than the change’s collapse, BlockFi is allegedly getting ready to file for chapter, in keeping with a supply aware of the matter, as reported by the WSJ.

Fiat and crypto withdrawals have been suspended on Liquid International in compliance with the necessities of voluntary Chapter 11 proceedings in the US.

Till additional discover we might counsel to not deposit both FIAT or Crypto

We are going to present updates when obtainable.

— Liquid International Official (@Liquid_Global) November 15, 2022

Cointelegraph reached out to BlockFi and Salt for remark, however didn’t obtain a response in time for publication.