As the collapse of FTX continues to reverberate across the industry, Blockfi has filed for Chapter 11 in the US.
Most activity on the platform was stopped because of significant exposure to FTX.
The company said it was seeking court protection to restructure and recover money from investors.
FTX brokered a rescue deal for BlockFi as the value of cryptocurrencies plummeted.
FTX ran into its own problems this month as people rushed to withdraw money from the platform due to doubts about its finances.
The firm declared bankruptcy after Bankman- Fried resigned.
The collapse has made people suspicious of the industry.
The collapse of FTX was described by Blockfi as shocking.
BlockFi said in a court filing that it owed a lot of money to many people. FTX is the second-largest creditor with a loan of $275m.
The Securities and Exchange Commission found that the firm had misled the public about the risk levels in its loan portfolio and lending activity.
The Chapter 11 filing will allow the firm to develop a reorganization plan that maximizes value for all stakeholders.
The company said it had a lot of cash.
Blockfi has worked to advance the sector from the beginning. Mark Renzi of Berkeley Research Group is the company's financial advisor.
Blockfi was founded to bridge the gap between traditional financial products and Cryptocurrencies.
It has received hundreds of millions of dollars in investment over the past few years. It said it managed more than 15 billion dollars last year.
The firm is not the only one to have been hit by the fall in the price of cryptocurrencies. In June, the value of the most popular digital currency was less than $20,000.
Several firms have filed for bankruptcy.
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