We know that our client community has a lot of questions. We are focused on doing the utmost to be transparent around decisions related to our pause, products, and platform activity. Please find below an FAQ with the latest information.
- Why did BlockFi pause platform activities?
- Following the events surrounding FTX, we determined that in the current environment we could no longer operate our business as usual. The most prudent decision for us, in the interest of all clients, was to initiate a pause of many of our platform activities.
- What’s next?
- There are a number of scenarios that may be available to us, and we are doing the work now to determine the best path forward. BlockFi has engaged expert outside advisors that are helping us navigate BlockFi’s next steps. Across BlockFi, our team is working tirelessly towards our primary objective of maximizing value for all of our clients, and that will see us explore every strategic option available to us.
- Where can I find information about my account?
- Who can I contact if I have questions?
- Should you have questions, you are welcome to contact our client success team here. Please note, that due to the volume of client inquiries, response times may be delayed.
- Will the company contact me by email if there are any changes to my account?
- Yes. You will continue to receive email updates if there are changes to your account. Please continue to check BlockFi’s official communication channels for updates related to our pause, products, and platform activity.
- Does BlockFi hold 100% of client deposits on FTX?
- The rumors that a majority of BlockFi assets are custodied at FTX are false. However, as shared, we do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US
- What impact does FTX’s Chapter 11 have on BlockFi?
- We were shocked and dismayed by the news regarding FTX and Alameda. We, like the rest of the world, found out about this situation through Twitter. Given the lack of clarity on the status of FTX.com, FTX US, and Alameda, we are not able to operate business as usual.
- While we will continue to work on recovering all obligations owed to BlockFi, we expect that the recovery of the obligations owed to us by FTX will be delayed as FTX works through the bankruptcy process. We intend to communicate as frequently as possible going forward but anticipate that this will be less frequent than you are used to. Our priority has been and will continue to be to protect our clients and their interests.
- You can find additional information about FTX’s chapter 11 cases here.
- How often will BlockFi provide updates?
- We intend to communicate as frequently as possible going forward but anticipate that this will be less frequent than what our clients and other stakeholders are used to.
Retail Loan Questions
- What does this mean for my loans and loan collateral?
- At this time, clients do not have the ability to post new funds to BlockFi. As a result, we are putting your loan into administrative forbearance.
- Any amounts due, including interest and maturity payments, are placed on hold until further notice. The interest rate on your loan will be set to 0% from November 11, 2022 onwards and clients will not be charged additional interest if or when a loan enters delinquency after November 11, 2022. Your loan will not be reported as delinquent to any credit bureaus.
- You are not expected to make a payment at maturity while your loan is on hold and there will be no late fees associated with any payments, including at maturity. Additionally, autopay has been turned off for your account, if it was enabled.
- Should you have questions about this process, you are welcome to contact our client success team HERE.
- Why is my loan showing as delinquent?
- For US-based customers, our loan servicing provider, Scratch, will show your loans as delinquent on their system, but given the 0% interest rate, your loan will not accrue any interest or late penalties. Your loan will not be reported as delinquent to any credit bureaus. Clients can disregard the automatically generated email from Scratch at the time of maturity notifying them of delinquency on Scratch’s system.
- Is BlockFi liquidating retail loans if the loan reaches liquidation loan-to-value (“LTV”) while platform activities are paused?
- At this time, clients do not have the ability to post new funds to BlockFi. As a result, we are putting your loan into administrative forbearance. BlockFi has paused margin call requirements and auto liquidations at predefined loan-to-value levels.
For further questions, you are welcome to contact our client success team here. As you can imagine, we are receiving an overwhelming number of inquiries and may need some time to get back to you. We will respond as soon as we are able.
Last updated on November 23rd, 2022