BlockFi confirmed on Monday it has "significant exposure to FTX and associated corporate entities" including "obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US."
The cryptocurrency lender decided to extend the suspension on several activities on its platform, including client withdrawals, and instructed clients not to submit any deposits in light of the bankruptcy filing by crypto exchange FTX. BlockFi said in a statement that it expects "that the recovery of the obligations owed to us by FTX will be delayed," but pointed out that it "has the necessary liquidity to explore all options" so it could take "the best path forward."
Earlier this year, the two sides reached a deal worth nearly $700 million focused on a loan to BlockFi by FTX and a potential acquisition of BlockFi by FTX.
