WSJ: Crypto lending platform BlockFi to file for bankruptcy

On November 11, the company announced that it would not be able to conduct business as usual and would restrict operations due to uncertainty regarding the status of FTX and Alameda Research. BlockFi suspended withdrawals and advised users to refrain from making deposits.

On the same day, FTX Group filed for bankruptcy, and Sam Bankman-Fried stepped down as CEO.

On November 14, BlockFi denied rumors that most of its assets are held on FTX. However, the company acknowledged that it has a credit line provided by the American division of the exchange and outstanding obligations from Alameda Research.

"In June 2022, FTX opened a $250 million renewable credit line to BlockFi. Subsequently, the American division of the exchange issued the company another renewable loan for $400 million, receiving an option to acquire the platform for $240 million," the statement said.

According to WSJ sources, BlockFi has used "most, if not all, of the funds." They also noted that the company provided Alameda Research with "millions of dollars in loans, partially secured by FTT tokens."

The publication's interlocutors added that as of the end of 2021, the platform held customer deposits of $14 billion to $20 billion and $7.5 billion in outstanding loans.

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