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BlockFi Inc, a cryptocurrency lender, is preparing a bankruptcy filing after
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Halting customer withdrawals and acknowledging that it has "significant exposure to bankrupt exchange FTX," people familiar with the matter stated.
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This was due to FTX's July 2008 bailout of BlockFi,
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In which FTX provided a $400 million revolving loan facility to the lender and an option to purchase the company for as high as $240 million.
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BlockFi halted withdrawals and limited activity last Wednesday due to uncertainty over FTX.
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It said it couldn't continue operating as usual.
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BlockFi plans to lay off some workers in preparation for a potential chapter 11 filing, according to the WSJ.
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