BlockFi, a cryptocurrency platform offering multiple financial products like low-interest loans and a crypto rewards credit card, could become the latest casualty following the FTX collapse that continues to hurt the entire cryptocurrency market.
Although the company initially denied having most of its assets in the cryptocurrency exchange, management has now admitted having significant exposure to FTX, Forkast News reported, citing The Wall Street Journal.
Furthermore, BlockFi also acknowledged having an undrawn line of credit and substantial obligations with FTX.
This happened after the Sam Bankman-Fried-owned firm provided timely assist for the lending company in July this year via a $400 million revolving credit facility and an option for a buyout for $240 million.
BlockFi Prepares To Go Belly Up
Last Friday, citing lack of clarity about the circumstances involving the Bahamas-based crypto exchange and its trading arm, the Alameda Research, BlockFi announced via Twitter that it was halting customer transactions.
The matter took a turn for the worse, as some people familiar with the situation were cited by the Journal for reports that the company is indeed planning to lay off some of its workers in preparation for a Chapter 11 Bankruptcy filing.
Under this chapter of the U.S. Bankruptcy Code, a debtor usually…
