BlockFi halts withdrawals amid FTX crisis, Genesis Trading, Crypto.com emphasize transparency


BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

BlockFi limits its platform activity and pauses client withdrawals amid the FTX crisis. 

BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

In a Twitter post, BlockFi clarified that this is due to the lack of clarity on the FTX issue. The announcement comes two days after BlockFi COO, Flori Marquez, took to Twitter to share her views regarding the FTX debacle.

BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

Marquez had previously, in a series of Nov. 8 Twitter posts, assured investors that all deposits, withdrawals, trading, and lending were up and running. 

BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

1) All @BlockFi products are fully operational.

BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

— Flori Marquez (@FounderFlori) November 8, 2022

BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

As part of that announcement, the COO disclosed that BlockFi has a $400 million loan from FTX.US, which will remain an independent entity until at least July 2023.

BlockFi Halts Withdrawals Amid FTX Crisis, Genesis Trading, Crypto.com Emphasize Transparency

Earlier, Sam Bankman-Fried, the CEO of FTX, clarified on his latest Twitter thread that the recent issues with the exchange are related to FTX international, while FTX.US user funds are safe.

Crypto firms are stressing transparency 

As the crisis ravaging FTX continues to impact the crypto space, numerous firms in the industry have emphasized transparency as the only way to cushion the effect of the situation.

Recall that many of these firms have got exposed to the troubled FTX. While some firms are hiding this fact from their investors, others have chosen to be transparent, opening up on their relationship with the crypto exchange.

Genesis Trading, for instance, in its Nov. 10 Twitter post, confirmed that its derivative business has about $175 million worth of funds locked in an FTX trading account. However, the firm insisted that this exposure does not impact its market-making activities. 

As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.

— Genesis (@GenesisTrading) November 10, 2022

Genesis believes its operating capital and net positions in FTX are not material to its business. It assures investors that the issues ravaging FTX have not impacted the running of its trading franchise.

Further, Crypto.com, a renowned crypto exchange, has also pledged to prioritize transparency in the wake of the crisis. Its CEO, Kris Marszalek, promised the exchange would release its proof of reserves audit system soon. This, according to him, will give investors in the exchange an insight into the state of its reserves. 

Later, the CEO promised to release the list of cold wallet addresses and balances for major assets within 24 hours.

https://t.co/pFc4Pz9nFR will publish the list of cold wallet addresses and balances for major assets within 24 hours.

Full transparency.

— Kris | Crypto.com (@kris) November 11, 2022

Recall that the exchange had, in the wake of the FTX saga, suspended the withdrawal of Solana and deposits of USDT and USDC; however, the CEO later confirmed that USDT and USDC on other chains operate normally.

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