BlockFi, a crypto lender, is preparing to file for bankruptcy in the wake the collapse of FTX crypto exchange.
BlockFi FTX Casualty Update
Another domino is on the verge to fall in the FTX saga. BlockFi is planning to file for bankruptcy, and will lay off employees. BlockFi had previously admitted that it was subject to “significant exposure” to FTX, the defunct cryptocurrency exchange. It was forced to suspend withdrawals and limit activity on its platform. This was in response to the uncertainty surrounding FTX.
The BlockFi team had previously denied any exposure to FTX. The firm has since admitted that it has an undrawn credit line and obligations with the defunct market. The team published a blog post in which they revealed all details about its exposure to FTX.

“The rumors that a majority BlockFi assets are held at FTX are false. Despite this, we have significant exposure to FTX, as well as associated corporate entities. This includes obligations owed by Alameda, assets at FTX.com, undrawn amounts from FTX.US credit line.

BlockFi pauses withdrawals
The significant exposure refers to FTX’s Bailout of BlockFi in July 2022. In this bailout, the former extended the lending platform with a $400m revolving credit facility and an option to purchase the company for up $240 million.
The team stated that they are focusing on recovering all obligations owed by BlockFi. It acknowledged, however, that the recovery from FTX may take some time while the latter goes through its bankruptcy process. The team announced that they will limit certain operations and suspend withdrawals from the BlockFi platform. The team requested that clients refrain from making any deposits to BlockFi Wallets or Interest Accounts.
Other Companies Affected
Many other firms that were exposed to the FTX have been taken down by the FTX contagion. Recently, California-based hedge fund Ikigai Asset Management was exposed as one of the victims of this implosion. Travis Kling, the fund’s founder, and chief investment officer, said that it had assets in FTX that it couldn’t recover. Kling also suggested that the firm could be closing its doors. Genesis Trading is another organization that has been affected by the drama. Genesis Trading has $175 million of its funds in an FTX trading account.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

  

BlockFi, a crypto lender, is preparing to file for bankruptcy in the wake the collapse of the FTX cryptocurrency exchange. BlockFi – Latest FTX Casualty – BlockFiThe FTX saga continues, with another domino on its way to falling. BlockFi is planning to file for bankruptcy, and will lay off employees. BlockFi had previously admitted that it was subject to “significant exposure” to FTX, the defunct cryptocurrency exchange. It had to stop withdrawals and limit activity on its platform because it couldn’t continue operations in the wake of the FTX uncertainty. The BlockFi team previously denied any exposure to FTX. The firm has since admitted that it has an undrawn credit line and obligations with the defunct market. The team published a blog post in which they revealed all details about its exposure to FTX.
“The rumors that a majority BlockFi assets are held at FTX are false. Despite this, we have significant exposure to FTX, as well as associated corporate entities. This includes obligations owed by Alameda, assets at FTX.com, undrawn amounts from FTX.US credit line.
BlockFi Withdrawals Are Being Halted The team stated that they are focusing on recovering all obligations to BlockFi. It acknowledged, however, that the recovery from FTX may take some time while the latter goes through its bankruptcy process. The team announced that they will limit certain operations and suspend withdrawals from the BlockFi platform. The team requested clients to not make any deposits to BlockFi Wallets or Interest Accounts. Other Firms InfectedThe FTX contagion has decimated many other firms that were exposed to the crypto exchange. Recently, California-based hedge fund Ikigai Asset Management was discovered to be one of the victims of this implosion. Travis Kling, the fund’s founder, and chief investment officer, said that it had assets in FTX that it couldn’t recover. Kling also suggested that the firm could be closing its doors. Genesis Trading is another organization that has been affected by the drama. Genesis Trading has $175 million of its funds in an FTX trading accounts. Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.