Just within days of FTX filing its chapter 11 bankruptcy, alerting the entire crypto market.
Crypto lender BlockFi is also reportedly preparing for its own chapter 11 bankruptcy. The platform has paused client withdrawals, citing uncertainties with FTX. The platform has also said that it had adequate liquidity and was exploring options with outside advisors.
Multiple reports confirmed that FTX US and BlockFi have close ties, where FTX US provided BlockFi with a $400 million revolving credit line, and in exchange, BlockFi has given massive loans to Alameda Research.
Some users have reported on Twitter that withdrawal requests put in three days ago still have not been completed.
BlockFi's website and a notice shared by the company since Nov 10 have suspiciously hinted at the trouble, citing that BlockFi cannot resume business as usual due to "platform activity" and that withdrawals will be paused.
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