Crypto lender BlockFi filed for bankruptcy Monday, becoming the latest casualty of the financial contagion unleashed by the collapse of Sam Bankman-Fried’s empire. BlockFi announced earlier this month that it had halted withdrawals, citing “significant exposure” to Bankman-Fried’s FTX exchange, as well as its sister hedge fund Alameda. FTX, Alameda and dozens of affiliates filed for bankruptcy on November 11.
The New Jersey-based company was one of several that received financial support from Bankman-Fried over the summer, as falling crypto prices threatened to take down key players in the digital asset ecosystem. In July, BlockFi secured a $400 million financial lifeline from FTX. The fallout from FTX’s decline is ricocheting throughout the crypto industry.
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