Centralized exchanges and crypto firms are slowly coming under crisis after FTX. The reason is SBF and Alameda Research’s financial involvement in these projects.
The news about BlockFi going bankrupt was first going as rumors circulated on Twitter but the company denied these allegations claiming it was simply limiting activity to recover.
However, on Nov 15, BlockFi officially filed for insolvency, making it obvious that huge amounts of its customer deposits were stored on FTX and the failure to retrieve them caused its downfall.
The crypto lender has approved licenses and regulations in many countries, so the number of customers is most likely at a global scale. SEC will be investigating BlockFi along with FTX’s case.