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Crypto lending platform BlockFi confirms bankruptcy

Following FTX's bankruptcy, BlockFi stopped withdrawals.

By Finst News
• 4 min read
Crypto lending platform BlockFi confirms bankruptcy

After FTX's bankruptcy, BlockFi stopped withdrawals. Now the crypto lender is officially bankrupt.

BlockFi has filed for bankruptcy

Crypto lender BlockFi filed for Chapter 11 bankruptcy on November 28, as stated in a related press release. The company says it aims to stabilize and give itself a chance to complete a comprehensive restructuring that maximizes value for all customers and other stakeholders.

The FTX exchange collapse is still unfolding

The bankruptcy is tied to the collapse of the crypto exchange FTX. Recently BlockFi disclosed "significant losses" against the crypto company founded by Sam Bankman-Fried. Meanwhile, BlockFi's financial advisor Mark Renzi reiterated: "BlockFi looks forward to a transparent process that delivers the best outcome for all customers and other stakeholders."

Activities remain on pause

While withdrawals were halted a few weeks ago already, "platform activity remains inactive," the company said. The firm had $256.9 million in cash. In the meantime, the FTX collapse continues to unfold.

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