In a recent statement to its users, BlockFi responded to the controversies surrounding FTX and its reported connection to the embattled cryptocurrency exchange.
The crypto firm denied allegations that the majority of its assets are held on FTX and called the rumor “false.”
Despite this, BlockFi admitted to having “significant exposure” to the exchange. This could cause a delay in the recovery of FTX’s obligations to BlockFi.
The exposure consists of Alameda’s obligations to BlockFi, assets held at FTX.com, and undrawn amounts from the credit line with FTX US.
The recent FTX bankruptcy filing also named FTX US, which was not expected to be involved in any financial rescue.
As it considers its next steps, the BlockFi team has pledged to communicate with users through official channels and to investigate all strategic options.
The BlockFi team confirmed that they have sufficient liquidity to pursue all options and have hired outside advisors such as Haynes and Boone to assist them in navigating the firm’s next steps.
Furthermore, BlockFi confirmed that it is in contact with its partners and intends to directly provide additional information on its credit card program as needed.
Furthermore, the team revealed how it has been working tirelessly to safeguard BlockFi.