Crypto lender BlockFi denied that it custodied most of its assets on FTX but said that it still has “significant exposure” to the bankrupt crypto exchange and related entities.

“The rumors that a majority of BlockFi assets are custodied at FTX are false. That said, we do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at, and undrawn amounts from our credit line with FTX.US,” said BlockFi in an update on Nov. 14.

In the update, BlockFi reiterated that it could no longer operate its business as usual in the current market environment. At the time of writing, BlockFi has not reopened withdrawals for client funds held on the platform. BlockFi announced that it had paused withdrawals on Nov. 11. 

The crypto lender, which pays out interest to holdings that customers deposit to its platform, said it expects the process of recovering all debt obligations from FTX to be long and drawn out as the crypto exchange works through its bankruptcy process.

BlockFi also said it “has the necessary liquidity to explore all options”. This comes as somewhat surprising, given the firm received a $400 million line of credit from now-bankrupt FTX.US in July. 

After BlockFi halted withdrawals last week, a number of customers reported that their BlockFi-issued credit cards had stopped working. 

BlockFi’s third-party infrastructure providers Evolve Bank and Deserve are reportedly handling the negotiations around these assets.