The FTX Collapse Has Another Crypto Company Preparing for Bankruptcy

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There is still much more to be done in the crisis.

Last week, FTX collapsed, wiping out $32 billion in valuation, and forcing it to declare bankruptcy.

Another major company could be about to do the same. The Wall Street Journal is reporting that Blockfi, a major lender that was bail out by FTX over the summer, is preparing for a possible bankruptcy filing.

Bank Run

According to the newspaper's reporting, the platform had between 14 billion and 20 billion customer assets as of last year, which are likely to be worth less now that the market has crashed.

While the industry was grappling with the collapse of FTX, the platform stopped withdrawals and limited activity.

The founder and COO of BlockFi reassured investors that operations were unaffected.

Free Fall

According to the WSJ, the platform is planning layoffs as well as a possible Chapter 11 filing.

BlockFi admitted in a post this week that it had a lot of exposure to both FTX and Alameda.

There are a number of scenarios that may be available to us and we are doing the work to determine the best path forward. "We have the necessary funds to explore all options and we have engaged expert outside advisers that are helping us navigate our next steps."

It's not looking good for BlockFi since it was FTX that saved it from collapse.

More and more players are having to answer difficult questions as the crisis grows.

The Wall Street Journal reported that BlockFi was preparing for the possibility of a potential Chapter 11.

The FTX collapse is sogregious that even the Bahamas are investigating.