Crypto lending platform BlockFi has started demanding collateral from its investors after it stopped withdrawals.
With the collapse of cryptocurrency exchange FTX, the losses for the affected companies continue to grow. Especially companies that have connections with FTX are looking for ways to protect themselves from bankruptcy. Many companies have trouble paying back their investors’ assets. Investment asset management companies and crypto lending platforms are looking for ways to find new liquidity. However, beyond all the hustle and bustle, investors felt uneasy. One of these companies, BlockFi, began to demand collateral from its investors.
BlockFi Demands Collateral and Investment
BlockFi stopped withdrawals last week, citing FTX events. Investors who want to save their assets have received a new message from the company.
BlockFi requested a new investment and collateral in an email sent to a customer. The company conveyed this request that the best way to improve margin would be to collateralize the loan. In addition, the company informed its client to deposit cryptocurrencies in his wallet and create collateral.
BlockFi founder and CEO Zac Prince, who is on leave until the end of the year, declined to comment on the matter.
The investors of the company are experiencing loss of confidence and uneasiness due to the events. It was noteworthy that the company, which stated that it would carry out all transactions without any problems, requested collateral.
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