Just as the markets were finally digesting the blowup at FTX and Alameda, now crypto lender BlockFi too has filed for bankruptcy proceedings as the crypto rout continues to spread.
Earlier in June, FTX had agreed to provide BlockFi a credit line of $400 million and had gained an option to acquire the crypto lender.
Consequently, the sustainability of BlockFi was inevitably hinged on FTX. In the aftermath of the FTX fiasco, BlockFi had halted withdrawals and noted its substantial exposure to FTX.
BlockFi now joins a growing list of casualties in the crypto world that includes Celsius and Voyager. BlockFi is now focusing on recovering obligations owed to it but recoveries from FTX could take a while.
The change of fortunes continues rapidly in the cryptoverse and the two major cryptocurrencies, Bitcoin (BTC-USD) and Ethereum (ETH-USD) have now dropped 72% and 73% respectively over the past 52 weeks.
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