BlockFi wants to go bankrupt because of FTX! Who's Next?


 BlockFi, a lending platform for crypto investors is reportedly set to file for bankruptcy after also being hit hard by the FTX crisis.

Under duress, the platform admitted it had been significantly impacted by FTX limiting its ability to operate normally.

It has previously denied claims that the majority of its assets are held on the exchange platform.

It is understood that BlockFi filed for bankruptcy shortly after the company stopped withdrawing customers last week, during the outbreak of the FTX crisis.

Commenting on BlokFi's Twitter account, they are no longer able to continue their business and express disappointment that FTX and Alameda have refused to provide any explanation regarding the issue.

The streak, in a snippet on its official blog on Monday, BlockFi plans to freeze its platform activities until the FTX crisis recovers.

For the record, FTX was once interested in buying BlockFi outright for $240 million because of its ability to survive Three Arrows Capital's delinquent loan market collapse by having $400 million in revolving credit.

Meanwhile, the planned purchase of FTX by Binance to restore the liquidity problems it faced failed when the company stated that the exchange platform was surrounded by a number of debt burdens.

In general, the largest crypto exchange FTX is currently experiencing a fall in less than a week and it is expected that there will be many more crypto exchanges that will experience similar temps.