Will BlockFi pause withdrawals after FTX collapse?

BlockFi advertisement in Washington, D.C.'s Union Station (CoinDesk archives) Crypto lender BlockFi said it could not conduct business as normal and would be limiting activity in the wake of FTX's collapse. The company said in a tweet that the "lack of clarity" around FTX's current situation meant it would pause client withdrawals.

Did FTX's influx of withdrawal requests 'exceede' 'current liquidity'?

Genesis says an influx of withdrawal requests ‘exceeded’ the brokerage’s ‘current liquidity’ following FTX’s collapse last week. By Emma Roth, a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.

Which crypto exchanges have been affected by the FTX collapse?

Other exchanges have been affected by the FTX collapse including BlockFi, which filed for bankruptcy on Nov. 28. FTX is a now-defunct cryptocurrency exchange founded by Sam Bankman-Fried in 2019, who served as CEO until Nov. 11. The exchange issued its own token, FTT, and was the fourth-largest crypto exchange by volume as of Nov. 9.

What happened to FTX?

The issues at FTX have complex roots, but reached a head early Tuesday, Nov. 8, whena huge wave of withdrawals drained FTX of liquidity and effectively froze the platform – almost always a sign of serious issues for a centralized exchange.