BlockFi Days Away From Declaring Bankruptcy: Why This Report Thinks It Will Happen Soon

Cryptocurrency lender BlockFi is closer to bankruptcy, an announcement that could come in the coming days according to a new report.

What Happened: Crypto lending company BlockFi has been in the news recently thanks to its connection to cryptocurrency platform FTX. After FTX declared bankruptcy last week, BlockFi could be nearing the same path.

The new report comes days after the Wall Street Journal reported BlockFi was getting ready to fire employees and file for chapter 11 bankruptcy.

A report from Bloomberg says BlockFi is days away from filing for bankruptcy.

Related Link: FTX Had $8.9 Billion In Debt, Could That Be Why Binance Was Offering $1 To Acquire Business 

Why It’s Important: BlockFi previously denied rumors that it had the majority of its assets connected to FTX.

The company halted customer withdrawals recently.

FTX US previously provided a $400 million revolving credit line to BlockFi and also offered to purchase the company. BlockFi also gave loans to Alameda Research, the company backed by FTX co-founder Sam Bankman-Fried and closely linked to FTX.

BlockFi was singled out by Jim Cramer Tuesday night after CNBC host Scott Wapner interviewed Bitcoin bull Anthony Pompliano. 

Read Next: Genesis Crypto Lending Unit Halts Customer Withdrawals On Heels Of FTX Bankruptcy

Photo: T. Schneider via Shutterstock