Want to start earning interest on Bitcoin through BlockFi? You can not

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In short

  • BlockFi did not allow registrations for much of Sunday and Monday.
  • The team says they are working on the problem.

Crypto loan and savings app BlockFi has temporarily stopped taking new registrations for its Sunday night service.

A note at the top of the website currently reads: “NOTE️: New BlockFi registrations are temporarily suspended. Existing BlockFi customers continue to have full access to the platform. Thank you for your patience in upgrading our systems. “

However, while the system upgrade has already taken place on Monday morning, new registrations have remained on hold.

Neither BlockFi nor its co-founder and vice president of operations Flori Marquez responded to a Decrypt request for comment.

There are plausible explanations that are relatively benign.

For example, in January, the crypto and equity trading platform eToro was unable to meet strong trading demand. Rather than disappoint existing users, it increased minimum starting deposit for new users, who had joined en masse and were straining the network.

Later in the month, eToro indicated that it may also have to limit how much existing crypto users could buy – not because its systems were overloaded, but because there might not be enough cash for eToro to buy on behalf of customers.

Of course, eToro isn’t the only crypto platform to publicly report the difficulties. The US-based exchange Coinbase also has a used to go down during periods when there is a significant spike in the volume of transactions.

BlockFi’s main offering is a sort of savings account for cryptocurrency. Customers earn interest on their deposits Bitcoin, Ethereum, and a handful of other cryptocurrencies and dollar-indexed stable coins. It also allows customers to set up cryptocurrency as collateral for same day US dollar loans.

The service has grown over the years to meet the demand for crypto-centric financial products. He extended in Asia last april, deposited papers with the SEC in January this year to create a Bitcoin trust for accredited investors, and has regularly added new assets to its platform, such as Chain link.

BlockFi also experienced growing pains, as it reportedly plans to go public by the end of the year.

The company was criticized last May for taking five days to report a data breach that left some users’ personal data open to hackers through SIM card swaps. Essentially, the hackers tricked the mobile phone companies into believing they owned the number of BlockFi users. They then used those numbers to access certain personal data through BlockFi, including addresses and activity histories, but not social security numbers and passwords, according to the company.

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