BlockFi, a crypto platform that allows you to buy, sell, trade, and earn, has announced that it’s pausing client withdrawals on its platform until there’s further clarity about the situation with FTX and Alameda Research which have run into serious liquidity issues after being irresponsible with users’ funds.
On the news that Binance had refused to bail FTX out, the price of cryptos, including Bitcoin, fell, with some putting in new lows. Many users with funds on FTX no longer have access to their assets and now BlockFi customers are also frozen out, at least for the time being.
— BlockFi (@BlockFi) November 11, 2022
According to BlockFi, its priority is to continue protecting the interest of its clients, however, it doesn’t really give a lot of information about what will happen to people’s assets. It had asked that people do not deposit to their BlockFi Wallets or Interest Accounts right now and withdrawals won’t be possible.
Over the coming days, we will likely hear of other companies running into issues due to what’s happening at FTX. If you use an exchange to store your crypto assets, it’s strongly advised that you move them over to a crypto wallet that you hold the private key or seed phrase to, so you always have control of your assets and can’t be frozen out when things go wrong.