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BlockFi Lending Service Pauses Withdrawals

After BlockFi took out a loan from FTX a few months ago, the lending arm is temporarily pausing its withdrawals.

By Mike Hesp
• 1 min read
BlockFi Lending Service Pauses Withdrawals

After BlockFi took out a loan from FTX a few months ago, the lending arm is temporarily pausing its withdrawals.

BlockFi also doesn’t appear to be immune to the FTX saga. According to an official post on View post on X, the lender has decided to curb activity on its platform. The company says it cannot continue its activities due to "the uncertainty about the status of FTX.com, FTX US and Alameda".

Therefore, customer withdrawals are suspended "until there is more clarity." BlockFi points to its terms and conditions. Users are also advised to refrain from deposits into their wallet and interest accounts, BlockFi writes.

A few months ago, the lending arm borrowed $250 million from FTX to pay down debts. The crypto exchange was then even planning to acquire BlockFi.

FTX is currently under heavy scrutiny. The SEC is now involving itself with the platform as well. According to the SEC, FTX violated securities laws, with a link to the relevant passage at securities laws.

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