For the past two weeks, the entire cryptocurrency world has been facing a storm due to the collapse of FTX. At the moment, many companies are indeed preparing for bankruptcy. This is the case of BlockFi which was forced to announce the freezing of withdrawals. This crypto platform took out a loan of $250 million in FTT from FTX.
BlockFi: Another victim of the collapse of Sam Bankman-Fried’s empire
BlockFi is a centralized platform (CeFi). More explicitly, it is a cryptocurrency custodian company. It allows its customers to take out cryptocurrency loans and save.
BlockFi also collaborates with VISA to offer its customers a crypto bank card service.
Following the fall of FTX, the BlockFi platform was forced to suspend withdrawals. It also blocked the funds of its users. Recently, she announced the suspension of credit cards from BlockFi. These have stopped working.
BlockFi, heavily exposed to FTX products
The fall of FTX and the bankruptcy of BlockFi are closely linked. BlockFi court documents reveal that the company received a $250 million FTT loan from FTX. And given the free fall in the price of FTT in recent times, it can be very well understood why the BlockFi company is currently in serious financial situations.
A blow for BlockFi which has just recovered from another event similar to that of Terra Luna. This year, BlockFi has indeed paid a lot for the market crash caused by the fall of Terra Luna.
BlockFi is currently preparing its bankruptcy filings. But if we trust the Journal du coin site, this company is of interest to the big names in the cryptocurrency market. We already know that Curve and Binance are ready to buy back BlockFi bank cards. To be continued…
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