Crypto lender BlockFi halts withdrawals | Hacker News Reader

Crypto lender BlockFi halts withdrawals

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27 pointsjanmo9 comments

This move was to be expected, they lost their lifeline from FTX/SBF. It is to be expected that they also have outstanding loans to Alameda Research.

I believe BlockFi will soon file for CH11 like Voyager and Celsius did.

If you have any funds with a crypto lender such as Nexo, Swissborg LEDN, or even crypto.com (Which also has a lending service). I highly recommend to withdraw your funds ASAP.

I actually had a fairly significant (though not life changing) amount of money deposited there, but withdrew it in January thankfully. It was actually a comment here that unspooled potential malfeasance with tether and how it could set up possible systemic risk throughout the ecosystem that finally spooked me off crypto entirely.

My cousin had what I assume is 6 figures in crypto at one point based on how he talked about it. I shared my sentiments with him and last I heard, his mother was trying to convince him to get out as well. I'll give him another prod next time I see him.

I was simnifically long crypto and sold in Nov of last year after seeing the Mashinsky/ Peter Schiff debate. It took me 15minutes to understand that Celsius was a ponzi scheme. More worrying was that back then the whole crypto twitter was celebrating Mashinsky like a crypto god. Did also some digging into Tether followed Bitfinex'ed and got convinced that there will be a huge collapse coming soon once those ponzis run out of liquidity.

I would call him as soon as possible. Seriously.

I don't think it would do much good. He's a great guy and pretty rational, but I think this is a bit of a blind spot and he viewed it as a lottery ticket for early retirement. He's a lot more plugged into this stuff than I so I'm sure he's aware of the recent goings on. And he could lose it all and basically be financially OK, but I'm sure it would hurt.

Fair enough, 6 figures is a lot for some. Good luck to him.

Decimal points with crypto can get pretty long

0.0000000001

Boom. Another one bites the dust. There are no circuit breakers here folks, and no one to come to the rescue. I would be very nervous about having any significant amount of crypto on an exchange right now.

The writing was on the wall:

https://hn.algolia.com/?q=blockfi

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