According to The Wall Street Journal, crypto lender BlockFi is preparing a potential bankruptcy application due to a significant connection with the bankrupt FTX crypto exchange
Earlier, BlockFi denied rumors that most of their assets were in FTX. However, at the beginning of this week, representatives of the lender admitted that in addition to deposits on the platform there was an unused FTX credit line with existing debt obligations.
Last week, BlockFi suspended the withdrawal of customer funds after the collapse of FTX, which was launched by the publication of the balance sheet report of the trading company Alameda Research, which is a subsidiary of the FTX crypto exchange. At the same time, representatives of BlockFi did not immediately respond to media requests to comment on the likely filing for bankruptcy.
BlockFi was founded in 2017 in Jersey City and is a digital asset lender. At the time of the peak of capitalization, the company was estimated at $ 3 billion. In July 2022, it was announced that the FTX cryptocurrency exchange had concluded a deal with an option to purchase BlockFi in the amount of $240 million. The deal included a $400 million loan to FTX.