BlockFi, the Cryptocurrency lender who had significant exposure to FTX filed for Bankruptcy. Meanwhile FTX lawyers have to say that a considerable amount of bankrupt cryptocurrency exchanges are missing or stolen.

BlockFi was considered legit.  It was available to investors from across the world. Previously, they claimed that it will be possible for investors to withdraw their assets at any point.  Investors enjoyed 1 free withdrawal per month.

The funds at BlockFi were held by the Gemini Trust company.  Noteworthy, the Gemini Trust company was regulated by the New York Department of Financial Services.

BlockFi boasted of high security standards; however, the fact that they provided crypto-backed loans was hailed by many to be a risk factor when there will be periods of market volatility.

BlockFi provided a range of products:  1. Cryptocurrency trading 2. Crypto wallet 3.  Lending 4. Rewards credit card 4.  Services for high-net-worth individuals.

The collapse of FTX drove the all-ethical BlockFi to file for Chapter 11 bankruptcy protection. The cryptocurrency prices plummeted, and the situation got worse.

BlockFi used to be generating their revenue like many fintech companies, but instead of money they were all about cryptocurrency, which included interest, rehypothecation, withdrawal fees, Bitcoin trust, mining, and spread.

Noteworthy, on November 07, 2022, Flori Marquez expressed: “We’ve been busy at BlockFi over the past few months and have some ** big ** news to share! Today we announced that certain U.S. clients who are verified as accredited investors will get access to BlockFi Yield by the end of the year.”

They stated that Phase 1 of the investment would be to ensure that all Americans have access to earn interest on digital assets.

BlockFi was focused on submitting an S-1 registration statement to the SEC regarding a public offering of BlockFi Yield to all U.S. persons, irrespective of their accredited investor status.

The reality is that BlockFi has been very careful about their business process.  They have been trying to work with regulators, were restricting high-risk investments to accredited investors, but still – things did not work as it should have been given the chaos caused by unethical and poorly managed exchanges and cryptocurrency environment.

Several onlookers were asking:  “I know this might be an unpleasant question but I need to know if you guys have lent to FTX Official for their native FTT token.  Binance (NOT FTXUS) bails out FTX, FTX bailed out BlockFi. What does that mean for our assets on the platform?”

Now we have the answer! BlockFi Owes 100000 Plus Creditors Filed for Bankruptcy due to FTT exposure.