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BlockFi news — exchange froze withdrawals, citing FTX crisis



blockfi customers

BlockFi news — The cryptocurrency lender has joined the list of companies that have restricted customer activity. BlockFi has suspended withdrawals, fearing an impending massive liquidation. In a message to customers, BlockFiannounced that it “cannot conduct business as usual” due to a lack of clarity regarding FTX, FTX.US and Alameda.

BlockFi customers will not be able to use the platform’s services, including withdrawals, until the situation is clarified. The company is also asking customers not to make deposits, although this is unlikely given the current situation.

Earlier this year, the company was forced to shut down access to cryptocurrency deposits at interest because the U.S. Securities and Exchange Commission didn’t like them. After paying $100 million in fines, BlockFi secured permission to reinstate such accounts. They became available to U.S. customers again just a few days ago.

Also, just the other day, the company received a $400 million line of credit from FTX.US, BlockFi founder and COO Florrie Marquez, announced Nov. 9. She assured customers that the loan does not create risks for the company, because FTX.US is an independent entity.

However, rumors were already swirling around the market that FTX.US would also impose restrictions on service or withdrawals.

The head of Ftx; Sam Bankman-Fried, posted a lengthy tweet on November 10 in which he admitted that he had made mistakes. In doing so, he confirmed that only FTX International was affected:

“FTX US, the U.S. exchange serving U.S. clients, has not been financially hurt in this mess. It is 100% liquid. Every user was able to make a full withdrawal if they wanted to,” he added.

In August, BlockFi was named the fastest-growing private company in the United States. However, in July, after the Terra crisis, there were rumors that cryptocurrency exchange FTX was going to buy the cryptocurrency lender for $25 billion. This information has not been confirmed.

Cryptocurrency markets are recovering

The cryptocurrency market is slowly recovering after falling to two-year lows. On Thursday, November 10, total market capitalization fell to $830 billion, returning to January 2021 levels. Since then, $60 billion has returned to the market and total capitalization rose 3% overnight to $900 billion.

Bitcoin (BTC) has recovered above the $17,000 mark, and ETH is back above $1,200, but the situation remains extremely volatile.

Previously, we reported on who could be pulled down by FTX: potential victims of the cryptocurrency crash.


Crypto Investors intend to have FTX arrested through protests



founder of FTX

Members of the crypto community intend to have FTX founder Sam Bankman-Fried arrested. Crypto trader and youtuber Ben Armstrong addressed this initiative to the crypto industry.

“If Sam [Bankman-Friede] is not arrested by the end of December, I will gather a large group (probably over a hundred people) who lost money [amid the collapse of] FTX. We will go to the Bahamas and protest outside the government building, the Albany Resort [where Bankman-Fried supposedly has real estate] and other [Bankman-Fried] properties until he is arrested,” Ben Armstrong wrote on his microblog asking subscribers who would like to join the initiative to check in under the post.

FTX arrested?

Many members of the crypto community responded to the trader’s call. For example, the initiative was supported by popular youtuber Dusty BC Crypto. The irony is that earlier Ben Armstrong himself, as a crypto blogger with a million audience, advertised the FTX crypto exchange and its native FTT token.

Some of the subscribers noted that it was time to file regulatory complaints against the crypto blogger himself, as he was involved in attracting investors to FTX. All of these events increase volatility in the cryptocurrency market, so it makes sense for an investor to consider the AMD price chart today.

This isn’t the first time members of the cryptocurrency community have raised the issue that FTX’s creator should be in jail. Some online users speculate that Sam Bankman-Fried could literally buy his freedom. Recall, it was previously revealed that the entrepreneur donated large sums of money to political parties.

Earlier we reported that Binance bought Sakura Exchange BitCoin in Japan.

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Hackers stole cryptocurrency worth $3.37 billion since the beginning of the year



how hackers steal cryptocurrency

In the 11 months since the beginning of the year, hackers stole $3.37 billion worth of cryptocurrency. According to PeckShield, cryptocurrency companies lost $1.3 billion to fraud in the fall alone.

Thus, in September there were 17 hacks, which resulted in losses of $171 million. Marketmaker Wintermute incurred losses of $160 million.

How do hackers steal cryptocurrency?

In October, hackers stole $760.2 million worth of cryptocurrency because of 44 hacking attacks. Then BNB Chain was hacked for $544 million, but the fraudsters could withdraw only $100 million of it – the other part of the funds were blocked by the developers. Then a hacker stole $1 million from the BitKeep cryptocurrency wallet by hacking it through a swap feature. Another hack came on Team Finance’s launchpad, which lost $14.5 million due to a smart contract migration feature bug.

There were 29 hacks in November that stole $391 million in various digital assets. Another $3 million was stolen from Skyward Finance based on the NEAR Protocol. An unknown hacker could “empty the reserves” of the project through a vulnerability in the smart contract. Note that due to global problems in the cryptocurrency market and the high cost of mining, even the NVIDIA price chart went down.

It was also reported that crypto exchange Coinsquare was hacked, but representatives of the company assured that customers’ assets “are safely stored in cold storage and are not at risk.”

Meanwhile, over the three months of the summer, cryptocurrencies suffered about $446 million in hacks. In June, the loss from 21 attacks was $227.76 million; in July, companies suffered losses from 12 hacks worth $10.2 million; and in August there were 18 attacks, which resulted in the loss of $208.5 million.

Earlier we reported that Terra Classic developers are launching an LUNC wallet.

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Largest bitcoin miners owe banks $4 billion



largest bitcoin miners

Now the largest bitcoin miners can’t pay back loans and give creditors hundreds of thousands of devices as collateral. This is reported by Bloomberg.

After the collapse of FTX crypto exchange, many companies that provided loans to largest bitcoin miners, including New York Digital Investment Group (NYDIG), Celsius Network, BlockFi Inc, Galaxy Digital, and the Foundry (a division of Digital Currency Group) are facing problems due to non-payment of loans.

Loans backed by mining equipment have become one of the most popular financing tools in the industry. Now, however, mining companies are having trouble making payments because of the drop in the bitcoin exchange rate and don’t have the funds to pay back the loans. Lenders cannot seize any assets from them other than cryptocurrency mining devices, the value of which has fallen 85% since last November. Even the Tesla price chart has gone down from that drop.

“We continue to take a cautious approach to risk-based financing in the mining industry. For example, in the third quarter, Galaxy’s mining division closed three existing leases totaling about $8 million,” said Michael Wursthorn, a Galaxy spokesperson.

Lenders are already paying attention to the surplus of mining equipment received after the loans are paid off. They are having to sell the equipment at a big discount or find data centers to mine bitcoins on their own. This surplus means that lenders could face further losses, given how saturated the market for mining equipment already is.

In November, mining company Iris Energy said it would not repay the loan it took out against the equipment and would prefer to develop other business operations instead. It said its two units registered to buy the equipment secured against it were not generating enough cash flow to service the line of credit.

Earlier, we reported that support for OpenSea Binance’s smart chain had appeared.

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