BlockFi, in an email to users Wednesday night, said it continued to prioritize risk management while dealing with market volatility. It confirms that 100% of retail customer withdrawal requests are honored, while only 10% of customer funds are held as collateral. 50% of the funds are held in short-term positions, and the rest may be long-term loans to third parties that generate income.
The company also clarified that it has never done business with Celsius and has not been involved in speculative bets on DeFi protocols. The email concludes with a quote from BlockFi CEO and founder Zac Prince: “I’m pretty confident that at some point in the future (maybe 6 or 18 months), we’ll be at some point in the next few months. Looking back, we would say, ‘That was an extraordinary time to buy.’ This happened because there was still a lot of room for long-term growth in this asset class.”
As previously reported, Zac Prince, CEO of crypto lending platform BlockFi, announced that the company has reached the following agreement (pending shareholder approval) with FTX US: FTX US provides BlockFi with a $400 million revolving credit line; Option to acquire BlockFi for a variable price of $100 million.
