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Crypto lender BlockFi files for bankruptcy after FTX collapse

BlockFi announces Chapter 11 bankruptcy filing in US as fall of FTX continues to reverberate across industry

The crypto lender BlockFi has become the sector’s latest big operator to declare bankruptcy, as the fallout of the collapse of offshore cryptocurrency exchange FTX continues to spread.

BlockFi, which operates in a similar fashion to a conventional bank, paying interest on savings and using customer deposits to fund lending, says it has $256.9m cash in hand. According to court documents, its creditors include FTX itself, to which it owes $275m, and the US Securities and Exchange Commission (SEC), to which it owes $30m.

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Technology | The Guardian