Crypto lender Celsius’ recent suspension of withdrawals has rattled sentiment towards its peers, with majors such as Nexo and BlockFi now facing potential bank runs.
The situation has also been exacerbated by the possible insolvency of major hedge fund Three Arrows Capital, to which several lending platforms are heavily exposed.
This uncertainty has prompted several crypto lenders to clear the air over their exposure to the two entities, and the potential fallout from a liquidation.
BlockFi is the latest lender to reassure investors over its liquidity conditions. The firm also appears to have liquidated a loan held by Three Arrows.
BlockFi’s comments also come a few days after peer Nexo offered a similar reassurance. The firm also offered to purchase Celsius’ remaining assets.
