According to people familiar with the situation, cryptocurrency lender BlockFi Inc. is preparing to file for bankruptcy after halting withdrawals of customer deposits and admitting it has “significant exposure” to bankrupt exchange FTX. Last week, BlockFi paused withdrawals and limited activity on its platform, stating that it couldn’t conduct business as usual due to the uncertainty surrounding FTX. According to people familiar with the situation, BlockFi is now planning to lay off some of its employees as the troubled company prepares for a possible chapter 11 filing.
