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    Crypto lender BlockFi files for bankruptcy in the wake of FTX Contagion

    On Monday, cryptocurrency lender BlockFi filed for bankruptcy, becoming the latest victim of the economic fallout from the downfall of Sam Bankman-empire.

    On Monday, crypto lending platform BlockFi filed for bankruptcy, becoming the latest victim of the financial contagion unleashed by the fall of Sam Bankman-empire. Fried’s

    In a statement released on November 10th, BlockFi explained that it had temporarily suspended customer withdrawals. Company officials said they had “significant exposure” to the Bankman-Fried FTX exchange and its sister hedge fund, Alameda, both declared bankruptcy earlier this month.

    When falling cryptocurrency prices threatened to wipe out several companies over the summer, New Jersey’s BlockFi was one of several to receive financial support from Bankman-Fried. BlockFi was able to get a financial bailout from FTX in July. As part of the agreement, FTX provided BlockFi with a $400 million revolving credit facility and an option to acquire the company.

    FTX’s demise is being felt across the entire cryptocurrency market.

    This story is developing and will be updated.

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