The crypto lending platform BlockFi admitted that the platform has a significant amount of assets on the FTX crypto exchange.
BlockFi is a popular crypto lending platform, which provides interest for the crypto holders on its platform. In short, it is a centralised crypto bank. In the last 6 months of the time frame, the majority of crypto lending companies faced problems during the high volatility situation.
On 14 November, BlockFi published a dedicated blog post on its connection with FTX & its subsidiaries. Through the blog post, BlockFi admitted that its business was impacted badly because of the downfall of the FTX empire but still has enough liquidity on its platform to run the business.
The team said that some significant amounts of funds are on the FTX exchange but rumours that BlockFi has the majority of the assets on FTX were false.
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“We do have significant exposure to FTX and associated corporate entities that encompass obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,” BlockFi stated.
The BlockFi team also confirmed that its services will remain suspended and it will work with advisors to handle this situation, to continuously increase the value of customers’ funds.
Earlier this, on 11 November, BlockFi announced that the platform suspended its services to stop any kind of negative impact which was initiated by the downfall of the FTX exchange, which started with a liquidity crisis on the FTX platform.
These things are showing that almost every crypto business is linked with other crypto businesses and the crypto Investors are using all these platforms on behalf of the trust with these platforms.
Read also: Kraken suspends accounts of the executives of the FTX exchange
BlockFi admits it has significant exposure to collapsed exchange FTX
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