It was stated that BlockFi, which stopped withdrawals after FTX’s bankruptcy, would file for bankruptcy. By the end of the second quarter, BlockFi had reached a total loan size of $1.8 billion and a deposit size of $2.6 billion.
The turmoil in the cryptocurrency market, which started with the bankruptcy of FTX, continues unabated. BlockFi, which offers interest-bearing deposit and loan services and cryptocurrency trading, is preparing to file for bankruptcy.
According to the news of The Wall Street Journal, which is based on sources close to the subject, the US-based BlockFi has prepared the necessary plans to fire its employees and file for legal bankruptcy.
Founded in 2017 by Zac Prince and Flori Marquez, BlockFi aimed to offer various traditional banking services in the cryptocurrency space.
BlockFi paid 11.5% annual interest on stablecoins. This meant that the dollar account yielded much higher returns than traditional banks.
BlockFi raised $300 million last year at a valuation of $3 billion. The decline in cryptocurrencies this year left the company in a difficult situation. FTX, bankrupt today, provided $400 million in liquidity to the struggling BlockFi. As part of the deal, FTX could purchase BlockFi for $240 million.