Crypto lender BlockFi files for bankruptcy as FTX fallout spreads

BlockFi, a cryptocurrency lender that targeted ordinary investors eager for a piece of the crypto mania, filed for bankruptcy on Monday, felled by its financial ties to FTX, the embattled exchange whose recent downfall has shaken the crypto industry to its core.

Based in Jersey City, New Jersey, BlockFi marketed itself primarily to small investors, offering them loans backed by cryptocurrency in minutes without credit checks, as well as accounts that paid high interest on crypto deposits. As of last year, the lender claimed to have more than 450,000 retail clients.

On Monday, BlockFi, which was founded in 2017, filed for Chapter 11 protection in New Jersey.