Crypto Lender BlockFi Filing for Bankruptcy and Conducting Major Layoffs as FTX Contagion Claims Another: Source

The FTX contagion has just claimed another crypto firm.

BlockFi will file for Chapter 11 bankruptcy protection later today, a source at the company tells Decrypt.

The crypto lender is also laying off a large portion of its staff, the source said.

BlockFi, which let users earn yield for depositing idle cryptocurrencies on the platform, first halted withdrawals on November 11, the same day FTX filed for bankruptcy. “We, like the rest of the world, found out about this situation through Twitter,” BlockFi wrote in a letter at that time. “We are shocked and dismayed by the news regarding FTX and Alameda.”

Nearly a week later, a source at the company told BlockFi that it was considering filing for bankruptcy, given its hefty exposure to FTX.

This story is breaking and will be updated shortly.

Source