Crypto loan firm BlockFi plans to investigate filing for bankruptcy.
The crypto company, which is financially intertwined with FTX, may also lay off its staff.
BlockFi Could Join the Caravan of Bankrupt Companies
Sources stated that after the crypto lending company stopped withdrawing customer deposits, it admitted to investing significantly in the bankrupt cryptocurrency exchange FTX.
BlockFi started researching for a potential bankruptcy filing after the liquidity crisis.
The company stopped withdrawals last week and it was stated that it will not be easy to do business as usual given the uncertainty about FTX.
It was also alleged that BlockFi plans to lay off some of its employees and is preparing to file for Chapter 11 bankruptcy.
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