What is BlockFi (BlockFi)?

BlockFi is a digital asset lender founded by Zac Prince and Flori Marquez in 2017. It is based in Jersey City, New Jersey. It was once valued at $3 billion. In July 2022, it was announced that the cryptocurrency exchange FTX made a deal with an option to buy BlockFi for up to $240 million.

Why is BlockFi paused?

As CoinDesk notes, the reason the FTX situation has hit BlockFi to the degree that it needs to pause withdrawals is because in July FTX.com agreed to provide BlockFi with a $400 million credit facility if certain conditions were met—a deal that now is in limbo due to FTX’s collapse. So what does this mean for BlockFi users?

Will BlockFi users be refunded?

"Users who stored their digital assets on BlockFi may never be refunded," said David Kemmerer, co-founder and chief executive officer of CoinLedger. "Assets held with a bankrupt crypto lender are sold to compensate creditors – who are the priority in the compensation list."

What happened to BlockFi in 2022?

In July 2022, it was announced that the cryptocurrency exchange FTX made a deal with an option to buy BlockFi for up to $240 million. The deal included a $400 million credit facility for the company. In November 2022, after the declaration of bankruptcy by FTX, the company halted withdrawals on its platform.