Crypto lender BlockFi has put client loans into forbearance, according to a customer email viewed by The Block.
"At this time, clients do not have the ability to post new funds to BlockFi," the email states. "As a result, we are putting your loan into administrative forbearance. Any amounts due, including interest and maturity payments, are placed on hold until further notice."
The customer email said that the interest rate on BlockFi loans will be set to 0% with a starting date of Nov. 11, the email said, adding that "margin call requirements and auto liquidations at predefined loan-to-value levels are currently paused."
Clients do not have to make payments on loans that have matured, the email said, and loans will not be reported to credit bureaus as delinquent. Loan holders will not pay late fees on any payments, according to the message. It does not appear that borrowers requested forbearance on their loans.
Previously, BlockFi announced that it paused client withdrawals on November 10th, citing "significant exposure to FTX and associated corporate entities."
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