Cryptocurrency lender BlockFi Inc filed for Chapter 11 on Monday, following FTX in bankruptcy and exposing the contagion effects of the crypto exchange’s failure.
BlockFi blamed its Chapter 11 filing on the fall in cryptocurrency prices this summer and FTX failure this month, a large exchange with ties in a largely unregulated industry. FTX’s affiliated trading firm, Alameda Research, owed $680 million to BlockFi earlier this month, the firm disclosed in court papers.