I was a BlockFi customer. I always had the sense that they wanted to do the right thing. They hired people with risk experience in traditional banking, had real customer support, engaged with regulators to get their interest rate product certified, etc. It is really a bit sad that they got entangled into the FTX situation. (I should also say that I withdrew my funds earlier. Otherwise, I may feel differently.)
It always felt like a facade to me. When 3AC collapsed and they were fined, they didn't really disclose how they 'solved' their liquidity problem. Taking a loan out just kicks the can down the road.
They also were handed an amazing deal that no one else was offering without taking a second to wonder why?
I assumed they received the deal because they were legit. :) But yes, agreed, hard to tell from the outside. We will learn more in the bankruptcy proceedings.
