--- title: "BlockFi Just Filed for Bankruptcy" description: "Major cryptocurrency lender BlockFi has filed for bankruptcy, a sign that the ongoing \"crypto winter\" is really starting to take its toll." date: "2022-11-28" modified: "2022-11-28" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/blockfi-files-for-bankruptcy" categories: - "Blockchain" - "Future Society" tags: - "blockfi" - "cryptocurrency" - "the digest" --- # BlockFi Just Filed for Bankruptcy ![Major cryptocurrency lender BlockFi has filed for bankruptcy, a sign that the ongoing "crypto winter" is really starting to take its toll.]() *\Image: Getty Images/Futurism\* ## Domino Effect Yet another major cryptocurrency lender has filed for bankruptcy, a sign of a deepening "crypto winter" that's continuing to take down the hype giants one by one. Crypto lender BlockFi is [filing for Chapter 11 bankruptcy protection]() just weeks after FTX, once the second largest cryptocurrency exchange by trading volume, [imploded in spectacular fashion](), sending ripples throughout the industry. BlockFi, which promised to act as a bridge between the crypto and the more traditional financial world, [says the filing]() will allow it to stabilize operations and restructure. We'll have to see. ## Significant Exposure At the time FTX went under in a [major destabilizing event]() that wiped out a $32 billion valuation in a matter of days, BlockFi had already [announced]() it was pausing withdrawals, which [spread rumors]() of an impending bankruptcy filing. In fact, FTX's collapse had direct repercussions on BlockFi's business. "We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US," BlockFi [said in a statement]() a week after FTX collapsed. ## Reimbursement The company now has a lot to answer for. According [to the *Associated Press*](), the company has more than 100,000 creditors and is liable for anywhere between $1 billion and $10 billion. At one point, the company was [valued at $4.8 billion](). As of right now, BlockFi has just $257 million in cash — meagre crumbs that it hopes will be enough to turn its operations around start picking up the pieces. **READ MORE:** [Crypto firm BlockFi files for bankruptcy as FTX fallout spreads]() \[*CNBC*\] **More on BlockFi:** *[The FTX Collapse Has Another Crypto Company Preparing for Bankruptcy]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()