BlockFi, a cryptocurrency marketplace where you can buy, sell, trade, and make money, has announced that it will halt client withdrawals until more information is available about the situation with FTX and Alameda Research, which have encountered significant liquidity problems after acting carelessly with users’ money.
The price of cryptocurrencies, including Bitcoin, dropped after it was revealed that Binance had declined to save FTX, with several reaching new lows. Numerous individuals who had cash on FTX are no longer able to access their holdings, and BlockFi clients are also currently frozen out, at least temporarily.
BlockFi claims that maintaining customer interests is a top concern, but it doesn’t really provide any information regarding what would happen to people’s assets. People were asked not to make any current deposits to their BlockFi Wallets or Interest Accounts, and withdrawals would not be permitted.
We’ll probably learn of more businesses having problems in the coming days as a result of what’s happening at FTX. If you store your crypto assets on an exchange, it is strongly encouraged that you transfer them to a crypto wallet for which you retain the private key or seed phrase. This will ensure that you always have access to your funds and won’t be locked out in the event of a problem.
