- BlockFi announces an official halt of all possible transactions.
- The ban on transactions was said to be temporary.
- All revolves around the fall of FTX globally.
Ever since the fight between FTX and Binance, things have been taking a quite different approach throughout the entire crypto industry. With the onset of the rivalry between CZ and Sam, both being the CEOs of top crypto exchanges, indeed affected the entire global crypto industry on many terms.
Though the year 2022, has been bitterly cold throughout, nearing towards the end, situations have gotten worse. And so, a triggered cold condition is prevailing currently. With the downfall of FTX crypto exchange, BlockFi has officially announced the halt of all the platform’s transactions.
Behind BlockFi’s Halt
Though BlockFi’s halt has been declared as a temporary one by itself, the consequences so far due to FTX are quite undetermined. BlockFi is a crypto financing platform, which lends all sorts of crypto buying support. Moreover, BlockFi also functions as an exchange and a trading platform too. Collateral assets could be also kept in exchange for crypto assets.
As FTX has been a major investor, and a partner of BlockFi, the downfall of FTX has quite adversely affected BlockFi. Apart from BlockFi, FTX US, Alameda all collapsed due to the FTX effect.
❗️BREAKING News: Crypto platform BlockFi to halt withdrawals immediately..
😭An ERA of Sorrow..
😔Winter is staying on this season.. #BlockFI #FTX #Sam Bankman-Fried #CZ #TRON #Tether #cryptocrash pic.twitter.com/t834sHiZLc
— CryptoOMG Ventures (@CryptoOMG88) November 11, 2022
BlockFi admitted that they came to know regarding the FTX situation through Twitter only. In spite of all this, they point out evidently that their entire traffic, and business has been adversely affected due to FTX, FTX US, and Alameda entirely.
And so, BlockFi puts out that they are halting all their platform activities just temporarily. Despite all this they openly stated out to their customers to not to invest anything upon their platform also.
However, with the current trend, even though BlockFi promises to look after its clients, and customers, the chances for BlockFi to declare bankruptcy is not a longtime down the line.