Crypto Lender BlockFi Prepares for Potential Bankruptcy Due to FTX Crisis

Crypto lending platform BlockFi is preparing a potential bankruptcy filing due to its "significant exposure​" to bankrupt crypto exchange FTX, as reported.

Fazzaco Hall of Fame 2022 Officially Opens (Click to Nominate)!

"We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US," BlockFi said.

Last Thursday, the company said in a tweet that it would pause client withdrawals​ because of the "lack of clarity" around FTX's current situation. The lender also told clients not to deposit to its wallet or interest accounts.

As a response to BlockFi halting withdrawals, the California's Department of Financial Protection and Innovation said the next day that it had suspended the company's lending licenses, which would last for at least 30 days.

Fazzaco earlier predicted the FTX crisis might have serious impacts on the crypto world, and blockfi has already been involved. Fazzaco will follow up on this matter.