11-12-2022 icon

BlockFi restricts activity, suspends outgoing payment transactions

By Lucy Adegbe

Financial product provider BlockFi has suspended customers’ outgoing transactions on its official site as a part of the protocol’s restrictive response plan to the FTX crisis.

In a Friday morning tweet, the firm explained that insufficient information from all FTX divisions -FTX.com, FTX US and Alameda- has hindered the nature of its operation.

Consequently, it has made the move to restrict activities in its space until there is sufficient clearness on current development, the firm further stated.

The protocol also put out a notice to discourage customers from attempting incoming funds transactions into the protocol’s wallet or profit accounts.

BlockFi owner and operations director Flori Marquez had tweeted, on November 8th, convincing customers that the entire BlockFi services were operating optimally and that the protocol acquired several million of loans from FTX US, a distinct division from the currently troubled one.

Marquez reassured tweet about BlockFi maintaining its stance as an autonomous firm until the seventh month of 2023 seems related to its loan transaction with FTX US, where FTX US had the choice of purchasing BlockFi for $240 million.

Recent notification on the FTX US official site highlights that FTX US may take the step to halt transactions in the coming days.

This has brought up queries about how much the crisis of FTX crisis has affected its US division.