BlockFi Declares Bankruptcy As FTX Fallout Spreads
investopedia.comCryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection on Monday along with eight affiliates as contagion from the collapse of cryptocurrency exchange FTX spreads across the industry.
Earlier this month, the New Jersey-based platform paused withdrawals after announcing that it was preparing for bankruptcy due to its «significant exposure» to the bankrupt crypto exchange FTX. FTX bailed out BlockFi this year with a $400 million revolving credit facility and an option to buy it for up to $240 million. Now the crypto lender's CEO has resigned, and it is laying off much of its staff.
FTX's sinking ship isn't only bringing down BlockFi. There are a large number ofcompanies exposed to FTX. Other crypto firms,such as Gemini and Genesis, have also been affected by FTX.
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