BlockFi attributed its difficulties to the collapse of the FTX virtual currency exchange that came to its rescue this summer. He thus announced on Monday, November 27, 2022 that he had filed for bankruptcy protection in the United States.

After the general fall in the value of cryptocurrencies, which caused several companies in the sector to stumble, BlockFi found itself in turmoil in the first half of the year. Indeed, some of his clients who deposited money into his account against the promise of paying high interest have withdrawn their funds under fear of losing them permanently.

Also, BlockFi was affected by the liquidation of the Singaporean investment company Three Arrows Capital, to which it had loaned money. For its part, FTX offered its help to help this platform. In particular, he proposed granting a $400 million line of credit. However, this platform has since been carried away by its own troubles, filing for bankruptcy on November 11 by ending the majority of its activities, including withdrawals. According to the message published on its site, “since this pause, the team has explored all the strategic and alternative options available to it.”