BlockFi eyes bankruptcy within days in wake of FTX downfall - report

Cryptocurrency lender BlockFi was said to be preparing to file for bankruptcy protection within days amid the implosion of crypto exchange FTX, Bloomberg reported Wednesday, citing people familiar with the situation. The company, which has a history with the now-bankrupt FTX, was forced to pause client withdrawals last week due to the uncertainties surrounding Sam Bankman-Fried's crypto empire, comprised of FTX and hedge fund Alameda Research, at the time. BlockFi, which has come under distress well before FTX collapsed, did not immediately respond to Seeking Alpha's request for comment. The FTX-driven financial contagion effects continue to spread throughout the crypto space, especially among firms with close ties to the exchange. Crypto brokerage Genesis, for instance, paused redemptions and new loan originations due to "abnormal withdrawal requests which have exceeded our current liquidity." And Voyager Digital ( OTCPK:VYGVQ ), which SBF was going to save via rescue financing, has reopened its bidding process in search of buyers for its assets. On Tuesday, BlockFi was reportedly getting ready for potential bankruptcy .