Crypto Lender BlockFi Is Insolvent

Following the collapse of the cryptocurrency exchange FTX, the U.S. bank BlockFi, which specializes in virtual currency, has now also filed for bankruptcy.

More broadly, the BlockFi business has been on a knife-edge since the spring, when the collapse of several major crypto companies sent the market into a panic and drove down the value of cryptocurrencies like Bitcoin.

BlockFi suspended payouts a few days after the stock market crashed, according to the New York Times. The company said it had a significant risk of loss to FTX, including undrawn amounts from its line of credit and assets held on the FTX platform.
Besides BlockFi, founded in 2017, Bitcoin also plunged 20 percent in one week after the industry crash.

In addition, Ceslius Network and Voyager Digital filed for bankruptcy.

Not even the company’s very prominent cap table of notable investors like Valar Ventures, Morgan Creek Capital Management, Coinbase Ventures, Galaxy Digital, Susquehanna Government Products, Winklevoss Capital, DST Global, Pomp Investments or Tiger Global can help anymore- BlockFi, which was still hailed as one of the best crypto startups in the world in 2021 and raised its valuation to three billion dollars via a $350 million Series D funding round, is finished.

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