Cryptocurrency lender, BlockFi, is reportedly planning to file for bankruptcy, according to multiple media reports days after crypto Exchange Company, Futures Exchange (FTX) declared it was bankrupt.
BlockFi is highly exposed to Futures Exchange, as the latter had offered to provide a $400 million revolving credit facility due to the former’s financial distress.
Both companies had also agreed in July that FTX could buy BlockFi for up to $240 million. However, five months later, Futures Exchange wound up, with allegations of misuse of customers’ funds.
Recall that FTX filed for bankruptcy this month, shortly after its rival, Binance, pulled out of an unbinding agreement to acquire the company.
The acquisition was meant to provide liquidity to Futures Exchange, but Zhao Changpeng, the founder of Binance said his company can’t proceed due to alleged misuse of customers’ funds and investigation by United States authorities in the affairs of FTX.
