I’ve been seeing a lot of speculation about BlockFi’s risk management practices that I want to address. While our policy is to not comment on specific counterparties, we are committed to providing as much transparency as possible, and it’s important to know the following:
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I have no internal knowledge about BlockFi's processes but I think they will be fine - they lowered rates responsibly so they probably have decent risk management
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Mex has a large insurance fund
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What is “an insurance fund”. Who is the insurer and who is underwriting the insurance? Holding reserves is wildly different than having reserve pools which are used solely for the purpose of reducing financial insolvency when volatility exceeds acceptable risk.
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Do you have any information about 3ac managing the treasuries of prominent projects they had invested in?
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