BlockFi’s Surprising Admission
On November 14, in an official update that felt like a plot twist in a bad soap opera, BlockFi confessed to having “significant exposure” to FTX and its affiliated companies. Just six days earlier, Flori Marquez, BlockFi’s founder and COO, had tweeted that all BlockFi products were “fully operational,” backed by a shiny $400 million line of credit from FTX US. Who knew that confidence could fade faster than my willpower at a donut shop?
SALT’s Strategic Retreat
Fast forward to November 15, and the crypto chaos continued as SALT, a crypto lending platform, decided to hit the brakes on withdrawals and deposits. According to their email to clients, the FTX fallout had thrown a wrench in their operations. CEO Shawn Owen assured users that this wasn’t a sign their ship was sinking, stating, “We are pausing to deal with the fallout of FTX”—a statement that, frankly, sounds catchy enough to be a hit single.
Liquid Global Takes the Plunge
And just when you thought things couldn’t get worse, FTX-owned Liquid Global also announced it would halt all withdrawals. This was a classic example of a crypto exchange breaking up with its customers over social media. They tweeted, “In compliance with the requirements of voluntary Chapter 11 proceedings in the United States,” leading many to wonder if customer loyalty had taken a permanent vacation.
The Ripple Effect Continues
- Crypto lending platforms are feeling the heat.
- Exchanges are suspending transactions to ensure stability.
- A bankruptcy wave is looming over the crypto landscape.
As FTX crumbled, it seems many affiliated companies were left clutching their pearls, realizing they too had caught the crypto flu. With potential bankruptcies on the horizon and companies scrambling for liquidity, there’s a fair chance this saga is far from over.
The Uncertain Future Ahead
Reaching out for comments, Cointelegraph found that both BlockFi and SALT were tight-lipped, likely contemplating their next moves like chess players in a high-stakes tournament. Will they rebound, or is it all checkmate?
Only time will tell how this cryptic drama unfolds, but one thing is for sure: when it comes to the crypto market, expect the unexpected—or at the very least, a headline that makes you gasp.
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