BlockFi files for bankruptcy
Cryptocurrency lender and financial services firm BlockFi has filed for bankruptcy, becoming the latest company in the industry to go under following the implosion of embattled exchange FTX.
BlockFi, which has been treading water since the value of cryptocurrencies such as Bitcoin plunged back in Spring, agreed to a $400.0m credit line with FTX in June, with chief executive Zac Prince stating the deal would provide the company with "access to capital that further bolsters our balance sheet".
However, BlockFi's stability was thrust into uncertainty following a series of revelations regarding corporate missteps and suspicious management at FTX earlier in November, with BlockFi suspending withdrawals a few days later, stating that it had "significant exposure" to FTX, including undrawn amounts from its credit line and assets held on the FTX platform.
Reporting by Iain Gilbert at Sharecast.com