BlockFi Employees Warned Of Credit Risks, But Say Executives Dismissed Them

. But a closer look at the company’s history reveals that its vulnerabilities likely began much earlier with missteps in risk management, including loosened lending standards, a highly concentrated pool of borrowers and unsustainable trading activity.

Like so many digital asset companies, crypto lender BlockFi let itself get swept up in the 2021 crypto frenzy. As bitcoin’s price rose sharply that year, BlockFi started expanding aggressively to meet investor demand. As of March 2021, BlockFi’s assets under management swelled to more than $15 billion, up from $1 billion the year before. In the first six months of 2021, it hired an average of more than 75 people per month, according to LinkedIn data, as its valuation hit $4.25 billion.

, in which the company states that “since its founding, BlockFi has been focused on providing best-in-class financial services and offering industry-leading protections.”for retail investors to store their funds and earn interest, but the company used retail deposits for questionable lending and unsustainable trading activities, says Ram Ahluwalia, CEO of digital asset investment advisor Lumida.

Until August 2021, BlockFi advertised that loans were typically over-collateralized. But large potential borrowers were often unwilling to meet those requirements, a

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BlockFi employees were discouraged from describing risks in internal communications: ReportBlockFi executives reportedly prioritized aggressive growth, while dismissing risk management professionals who attempted to do their job. Why is it that only US based crypto projects cause havoc in the Crypto space whilst behaving fraudulently. Best to stay away from any assets, dex, exchange owned and run by Americans. Let's not forget that one of BlockFi's biggest shillers was Pomp, who probably destroyed thousands of lives by shilling shady companies and btc to uninitiated & uneducated. He pivoted fast from being btc maxi and cedefi shiller, but tweets are still there. However, is anyone REALLY surprised that BlockFi discouraged employees from talking about risks in record-kept communications? The snake oil salesman understands he's selling snake oil... 🤷
Source: Cointelegraph - 🏆 562. / 51 Read more »

Pa. credit union is having trouble getting replacement Visa credit or debit cards for some customersThe credit union says it is working with its vendor. the online options aren't helpful when you need cash: stores with purchase minimums for credit cards, special events with entry fees/vendors that only accept cash, etc. I've been unable to usefully access my $ for 10 days & psecu has been all '¯\\_(ツ)_/¯ not our fault' over it. Supply chain issue lol. Not our fault 🙄. Said mine was mailed Nov 25th. 'The mail is slow' . Tired of excuses
Source: PennLive - 🏆 463. / 53 Read more »