BlockFi heading for bankruptcy as FTX contagion spreads

Crypto lender BlockFi is preparing a bankruptcy filing due to its “significant exposure” to the bankrupt crypto exchange FTX, according to the latest report by WSJ.

BlockFi paused withdrawals and limited activity last week due to uncertainty about FTX, saying it couldn’t operate as usual. In preparation for a possible chapter 11 filing, BlockFi is now planning to lay off some of its workers.