Cryptocurrency lending platform BlockFi is preparing to file for bankruptcy.
The company said last November 11 it would not be able to do business as usual and would limit operations due to a lack of clarity regarding the status of FTX and Alameda Research. At that time, BlockFi suspended withdrawals and advised users to refrain from making deposits.
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The same day, FTX Group filed for bankruptcy and Sam Bankman-Fried resigned as CEO of the company.
BlockFi denied on November 14 the information that most of its assets are stored at FTX. However, the company acknowledged that the platform has a line of credit provided by the exchange's US division, as well as outstanding obligations from Alameda Research.
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According to the statement:
"The rumors that a majority of BlockFi assets are custodied at FTX are false. That said, 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."