Most of our clients might have already heard that various crypto lending platforms are announcing the suspension of their services following the collapse of the FTX exchange. Yesterday, SALT Lending, the oldest player in this market suspended its services, and today Genesis and Gemini Earn had to make similar decisions. 

With this letter, I would like to reassure our clients that Inlock has not had any exposure to the service providers mentioned above and that the recalls of our outsourced funds are in progress as planned. In the forthcoming days, we will ask all our remaining institutional partners to declare whether they have any exposure to the entities in crisis, and of course, we will inform our clients of its outcome. 

In the past two days, we have discussed a number of issues which we believe have a significant chance of separating the damages – which are expected to be settled only through legal action – from the operation of the platform. If we are able to accomplish that, we will be able to lift the restrictions in the short term, and then the platform and our services will undergo a complex restructuring to fully eliminate the risk we are now facing.

We would like to ask for the patience of some of our clients who initiated a deposit on the day of the suspension’s announcement, but it has not been credited to their Inlock account yet. These deposits are surely not lost, but at the moment it is not clarified exactly how we can handle these funds. Answering this question is beyond Inlock’s reach, so we have involved an external expert to examine our options. As soon as we have resolved these issues, we will credit the sent assets.

Many of our clients have asked us which assets the damage was exactly made in, and we can confirm that the majority was in stablecoins, and in bitcoin and ethereum to a smaller extent.