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BlockFi Faces Potential Bankruptcy Due to Exposure to FTX
Summary: Crypto lender BlockFi is facing a possible bankruptcy due to “significant exposure” to bankrupt crypto exchange FTX, according to reports by Wall Street Journal. The lender denied rumors that its assets were held in custody at FTX, but acknowledged on Monday that it had deposits on the exchange, an undrawn credit line from FTX and ...
Crypto lender BlockFi is facing a possible bankruptcy due to “significant exposure” to bankrupt crypto exchange FTX, according to reports by Wall Street Journal.
The lender denied rumors that its assets were held in custody at FTX, but acknowledged on Monday that it had deposits on the exchange, an undrawn credit line from FTX and obligations owed to it by the exchange.
The lender has paused withdrawals since last week, when FTX fell into a liquidity crisis due to a CoinDesk article that questioned the balance sheets of its sister company, Alameda Research.
Author: Katie Lin
Tags: Alameda Research,bankruptcy,BlockFi,Crypto Exchange,crypto lender,Custody,Exchange,Exposure,FTX,liquidity crisis,Withdrawals
Link: BlockFi Faces Potential Bankruptcy Due to Exposure to FTX [Copy]
