According to Wall Street Journal articles, BlockFi is getting ready for possible bankruptcy following the failure of FTX.
BlockFi, a cryptocurrency lending business, was similarly impacted by FTX’s decline. BlockFi stopped the withdrawals on their platform in the midst of the commotion. On November 11, the users of the New Jersey-based exchange were warned that “platform activities” would be “limited.” BlockFi recently expressed its amazement and dismay about the failure of FTX and Alameda in a letter that was posted on Twitter.
Throughout the week, a spate of bad events occurred in the area surrounding cryptocurrencies. People in the cryptocurrency industry were in a state of shock following the fall of the FTX empire. Many staff and outside investors said they had lost their entire life savings since the platform was still holding on to user money.
According to one of the most recent Wall Street Journal articles, BlockFi is getting ready for a possible bankruptcy following the failure of Sam Bankman-Fried’s exchange.
BlockFi was heavily exposed to FTX
According to information provided by people with knowledge of the situation, the bitcoin lender is preparing for a potential bankruptcy. The specifics show that it had a sizable exposure to Bankman-Fried’s FTX. As it prepares to perhaps file for Chapter 11, the bitcoin lender also intends to let go of some of its staff.
It should be noted that BlockFi was having severe financial troubles at the time FTX acquired the company in July of this year. The platform lost $80 million as a result of Three Arrows Capital’s failure. FTX initially proclaimed itself to be “totally functional” despite its failure.
However, it appears that things have changed because the lender has reportedly been significantly impacted by the decline of FTX. It also joins the group of organizations that have been impacted by the collapse of the FTX empire.
