Crypto lender BlockFi denied that it custodied most of its sources on FTX however said that it serene has “fundamental exposure” to the bankrupt crypto trade and associated entities.

“The rumors that a majority of BlockFi sources are custodied at FTX are spurious. That said, we develop possess fundamental exposure to FTX and associated company entities that encompasses responsibilities owed to us by Alameda, sources held at FTX.com, and undrawn amounts from our credit line with FTX.US,” said BlockFi in an update on Nov. 14.

Within the update, BlockFi reiterated that it’ll now no longer feature its trade as typical in the hot market ambiance. At the time of writing, BlockFi has no longer reopened withdrawals for client funds held on the platform. BlockFi announced that it had paused withdrawals on Nov. 11.

The crypto lender, that will pay out hobby to holdings that customers deposit to its platform, said it expects the technique of recovering all debt responsibilities from FTX to be long and drawn out as the crypto trade works by its financial anxiousness job.

BlockFi moreover said it “has the fundamental liquidity to locate all choices”. This comes as critically unpleasant, given the firm received a $400 million line of credit from now-bankrupt FTX.US in July.

After BlockFi halted withdrawals final week, a sequence of purchasers reported that their BlockFi-issued credit playing cards had stopped working.

BlockFi’s third-celebration infrastructure suppliers Evolve Monetary institution and Deserve are reportedly handling the negotiations round these sources.