Before I put my assets in their account, I’d like to know what the risks are with BlockFi
In a nutshell, all Crypto investors need to be aware of 4 key risks:
- Exchange Risk.
- Company Default risk
- Borrower Default Risk
- Interest Rate Risk
BlockFi’s terms of service give the company significant leeway over how it uses depositors’ funds and what interest rate it can pay them.
BlockFi says it’s client funds are senior to BlockFi equity and BlockFi employee capital.
Regardless, you should not view the BlockFi Interest Account as a savings account or brokerage account with FDIC or SIPC insurance.