Is BlockFi Next?

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fter the crypto exchange FTX collapsed last week, BlockFi put a halt to all withdrawals.

According to Tuesday's Wall Street Journal report, crypto lender BlockFi is preparing for a potential bankruptcy filing because of its involvement with the now-bankrupt FTX exchange.

On Monday, the lender released a statement quelling rumors that most of its assets were held with FTX. However, they did admit to having deposits on the platform as well as an undrawn line of credit and obligations that FTX owes them.

Last week, BlockFi paused customer withdrawals in the wake of FTX's implosion that started with a CoinDesk report that raised questions about the balance sheet of trading firm Alameda Research, FTX's sister company.

After FTX bankruptcy last week, BlockFi paused customer withdrawals to assess the situation. This was due to a CoinDesk report that questioned Alameda Research's balance sheet, which is FTX's sister company.

Mike

An editor at Coincrop

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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.