FTX has claimed its next victim in its bankruptcy scandal. According to reports, BlockFi has filed for bankruptcy in effort to protect its assets going forward. The crypto firm had signalled a deal with FTX earlier this year as the market had soured early on.
They hope to “focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities,” Bloomberg reports. The 5-year-old New Jersey-based company filed for bankruptcy along several of its sister companies or affiliates reports the Globe and Mail.
It is understood that BlockFi ‘s downward spiral began after FTX lent it a $400m line of credit earlier this year.