BlockFi Announces Bankruptcy as FTX Contagion Spreads

• BlockFi, a company with heavy exposure to the now-bankrupt FTX, just announced it was also forced to file for bankruptcy.
• The company halted withdrawals and limited activity on its website already last week and cited “FTX problems”.
• On November 14th, BlockFi published an update in which the company denied that most of its assets were custodied at FTX, but stated withdrawals would remain paused and asked its customers not to make new deposits.
• Earlier on November 15th, WSJ reported that some insiders said BlockFi was planning to file for bankruptcy.
• BlockFi is the latest victim of the FTX collapse that unfolded rapidly between Tuesday and Friday last week.

This article originally appeared on The Tokenist