BlockFi Bankruptcy Follows FTX Implosion

SOPA Images/LightRocket via Getty Images Key takeaways On Monday, crypto lender BlockFi filed for Chapter 11 bankruptcy protections in the aftermath of FTX’s implosion Ironically, BlockFi lists FTX as its #2 creditor after a substantial bailout earlier this year The domino-ing bankruptcies reveal the early dangers of crypto lending platforms’ interconnectedness On Monday, crypto lender…

BlockFi Filing Reveals $680 Million Of Dud Loans To Alameda Were Behind Bankruptcy Petition

BlockFi representative blames Alameda default for bankruptcy filing. getty A BlockFi representative laid the blame for the crypto lender’s bankruptcy filing Monday squarely on FTX Trading, whose Alameda Research affiliate defaulted on $680 million of collateralized loans to the digital financing platform. An affidavit by Mark A. Renzi of Berkeley Research Group, the proposed financial…