- BlockFi, the crypto asset trading platform, blocked the withdrawals in the Wake of FTX.
- BlockFi discovered this news with the rest of the world and was shocked and dismayed at the information regarding FTX and Alameda.
- The company has also signed various agreements with FTX US stating it will enhance the entire growth of the company and the users.
The California State regulators have announced the probe that BlockFi will be limiting the platform acts as the result of the collapse of FTX and have opened the investigation and warned the consumers of a very volatile crypto asset.
BlockFi has a strong balance sheet and is well positioned for long-term stability as we continue to operate as business as usual. This credit facility agreement with FTX provides BlockFi with access to capital that further bolsters our balance sheet and platform strength.— BlockFi (@BlockFi) June 21, 2022
“We are shocked and dismayed by the news regarding FTX and Alameda,” said BlockFi in a tweet. They further added that due to a lack of clarity on the status of FTX.com, FTX US and Alameda, they will not be able to operate the business as usual. Furthermore, they have discouraged the users from depositing in BlockFi Wallet t Interest Accounts.
The Founder, Zac Prince, states that the company has signed various definitive agreements with FTX US (subjected to shareholder approval) users to have a $400M revolving credit facility subordinate to all client funds and an option to acquire BlockFi at a variable price of up to $240M based on the performance triggers.
Yesterday we signed definitive agreements, subject to shareholder approval, with FTX US for:— Zac Prince (@BlockFiZac) July 1, 2022
1. A $400M revolving credit facility which is subordinate to all client funds, and
2. An option to acquire BlockFi at a variable price of up to $240M based on performance triggers.
When questioned about these agreements, BlockFi further clarified that the company has a solid balance sheet and this agreement is just a business partnership that will further accelerate the platform’s growth.