Cryptocurrency lender BlockFi has temporarily suspended withdrawals on its platform amid the collapse of exchange FTX, which has reignited fears about a widespread liquidity crisis in the industry.
In a statement, the company said it was “shocked and dismayed” by the news regarding FTX and Alameda Research, both controlled by billionaire Sam Bankman-Fried.
“Given the lack of clarity about the status of FTX.com, FTX US and Alameda, we cannot operate as usual,” warned the company, which will also limit other activities.
The decision draws attention to the level of interdependence of the main actors in the crypto market. In July, FTX extended a $400 million line of credit to BlockFi, which at the time was facing the most acute effects of the wave of liquidation that hit the industry.
Four months later, FTX is at the center of its own crisis after receiving a series of requests for withdrawals over the weekend. Binance even announced that it would buy the rival, but then backtracked and backed out of the deal after discovering a hole of up to $8 billion in the company.
With the announcement of yet another victim of the “cryptocurrency winter”, bitcoin for November retreated 5.51%, to US$ 17,480, around 04:30 (GMT). Among altcoins, ethereum was down 3.69% at $1,272.02 and Solana was down 3.87% at $17.37.
For analyst Marcus Sotiriou, from broker GlobalBlock, the market turmoil will continue as long as there are uncertainties about the future of FTX. “If FTX fails to raise liquidity, we’re not sure how bad the contagion will be,” he warned.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
