BlockFi filed for bankruptcy Monday, after weeks of speculation about the company’s solvency after it paused withdrawals earlier in November. The lender had been relying on a $400 million line of credit from crypto exchange FTX, which itself filed for bankruptcy earlier this month after doubts emerged about its own solvency following a CryptoX report revealing FTX’s sister company Alameda held a large amount of FTX’s exchange token, FTT.
BlockFi Has $355M in Crypto Frozen on FTX, Attorney Confirms
