Is BlockFi About To Implode?

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In this video, I discuss whether BlockFi is about to implode and freeze withdrawals. There is a lot of speculation that BlockFi is in trouble, having possibly lent crypto to 3 Arrows Capital, which is in the process of being liquidated.

BlockFi has put out statements saying that everything is fine, but their actions speak louder than words: laying off 20% of staff and doing a down round both suggest a cash crunch.

In a crypto bear market, it becomes increasingly important not to leave your Bitcoin at any lending service or on any exchange. "Not your keys, not your coins." If a crypto company files for bankruptcy, your Bitcoin may be considered part of the company's general assets, which would mean that secured creditors will get paid back before you do.

Not investment advice! Consult a financial advisor.

My prediction of Celsius implosion:

Babel Finance suspends withdrawals:

Is BlockFi in trouble too?

Large crypto hedge fund being liquidated:

BlockFi refuses to comment on 3AC:

BlockFi says its risk management is good:

BlockFi cuts 20% of staff:

BlockFi doing a down round:

BlockFi pays $100 million penalty:

Who is BlockFi's primary custodian?

Gemini custodian assets:

Gemini only has $200 million in insurance:

Coinbase 10-Q:

Kraken Will Freeze Your Bitcoin:

Jesse Powell says to get your BTC off the exchanges:

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#blockfi
#bitcoin

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[Bitcoin_University]

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[cramsa]

I used BlockFi 1 year ago and I thought it was good UNTIL one day they had “maintenance problems” and I was LOCKED OUT OF MY ACCOUNT for 1-2 days… immediately after I could log in I transferred EVERYTHING TO COLD STORAGE.

The risks are not worth it people!

[satoshinakadashi]

This is the video I’ve been waiting for. I kept everything on BlockFi, but your recent warnings about Terra and Celsius were spot on, so I took your advice and took everything out of BlockFi. Thanks!

[themobsprinter]

I want to say, I'm someone who watched your video on Celsius, and said "No. They overcolateralize their loans! I'll be ok." And well, now I'm trapped and likely lost all my Bitcoin. You were right. I should've listened, and I didn't, and now I'll likely literally pay a high price for it. I don't have an account with Blockfi, but if you do, I ask you to please not make my mistake. I've barely slept all week just stressing about Celsius nonstop. It's not a fun place to be

[DiiceForeveroO]

I hope blockfi doesn't go bust. A lot of big institutions lend out their bitcoin on blockfi. This could spiral out of control quickly

[mihailomaksa]

It’s amazing how most of these implosions in the crypto space are basically due to same thing: people being greedy and wanting to get unsustainable yields, which leads them to become overleveraged. I guess 200% CAGR is just not enough for some people.

[ckellyme]

You personally were the reason I got my assets of Celsius a month or so ago. Thank you so much Matt for all you do. You've saved me a great deal of money. I have nothing but dust on blockfi so if they go under they get of my holdings. I left blockfi (for Celsius lol) last year after their ridiculous rate decreases and withdraw rules/ insane fees. I was wondering a year ago how they could stay in business with their competitors offering such better rates, fees. Turns out you were right though. All of them aren't worth the risk. I've learned so much the last two years and alot of the lessons have come from you. Have a great day.

[astrallite]

I think more interesting is Sam Bankman Fried just gave Voyager a $500 million bailout loan ($200 million and 15, 000 btc credit lines). Voyager is rumored to have given a 320 million loan to 3AC that may not have been fully collateralized. It seems to me FTX is going to start gobbling up entities that start struggling and use this crypto winter to grow market share.

[tonygrace]

The problem with products such as BlockFi, which I had a small amount .014 invested, but soon after withdrew (which took almost a week to receive), is we are too early in the life of bitcoin for these products to gain a level of confidence from the general public, to have it succeed. This is caused by less scrupulous operators causing doubt by over leverage and speculation and as a consequence, gives the fundamental properties of bitcoin, a bad name.

Your videos are extremely valuable, being delivered in such a calm, collected way, and have even more value in these times where doubts of bitcoins value are extremely high. Keep up the good work

[FF-emjk]

After Celsius imploded, Binance also froze Bitcoin withdrawals for a few hours for technical reasons. That and the videos on this channel convinced me to unbox my hardware wallet and actually start using it. I think in a really sad, but interesting way these implosions are actually helping Bitcoin to become more decentralized by forcing people to actually hold their keys, thus they are useful for the long term health of the Bitcoin network.

[chimchu]

Thank you for the heads up on this. I was one of the guys who thought you were crazy for missing out on the interest rates, now watching them fall one by one, I get it. Luckily I haven't lost any crypto, and I'm moving the last bits off exchanges and into my trezor today

[TheLordRichard]

For about a month ago I withdrew my funds from there, partly thanks to your warnings about exchanges. Thank you, and never stop!

[stewartswick]

Thanks Matt for all your work. I lost a Bitcoin to Celsius because I didn’t take your advice but got my coins off Binance with 12 hours to spare. Tough times but all this bad action is just making a Bitcoin standard more and more imperative.!

[petrolo]

💯 it’s a great thing to see many of these so-called “crypto“ companies get wrecked and many of these scammers flushed out. It’s unfortunate for the retail investor to lose significant capital, but you have to learn one way or another.

[CNote]

I wanted to publicly thank you for the Celsius heads up. After your video I took my 6K out, and left about $400 in just to keep the account. THANK YOU.

[miket.]

Great, be ethical, honest, and trustworthy, or you'll go under. No bailouts in the crypto economy, the way it should be.

[blackphoenix]

Thanks Matthew.. amazing work!!
Is Nexo next??

[MS-lvpw]

Let me get my money out before you post stuff like this. Are you trying to create a panic? Think about what you are doing dude

[jarrydhennequin]

I also took my assets off Celsius after watching your video. Thanks Matt 🙏

[BigJonkulous]

"...right before Bitcoin took its latest dump" is quite the way to phrase that, Matt!