Why did BlockFi go out of business?

BlockFi had blamed its predicament then on "crypto market volatility" and a broader market downturn. It was further hurt when another crypto lending platform, Celsius, filed for bankruptcy in June. While BlockFi said it didn't have any direct exposure to the competitor, it still saw an uptick in customer withdrawals.

Why did BlockFi pause customer withdrawals before FTX collapsed?

BlockFi paused customer withdrawals on Nov. 10, just before FTX collapsed into bankruptcy. When BlockFi filed Chapter 11 later that month, the crypto lender intended to restructure the business but determined earlier this year that a liquidation was the best option for repaying customers.

Is BlockFi about to file for bankruptcy?

A representative for BlockFi declined to comment. The Wall Street Journal earlier reported that the company was weighing a bankruptcy filing. FTX US and BlockFi are closely tied. In July, FTX US provided the lender with a $400 million revolving credit line, which came with an option to purchase the company.

Why did BlockFi file Chapter 11?

When BlockFi filed Chapter 11 later that month, the crypto lender intended to restructure the business but determined earlier this year that a liquidation was the best option for repaying customers. The case is BlockFi Inc., 22-19361, US Bankruptcy Court for the District of New Jersey (Trenton).