Glossary
BlockFi Collapse
The November 2022 bankruptcy of BlockFi — a crypto lending platform with $10B+ in deposits that failed shortly after FTX collapsed and exposed its loan to Alameda.
BlockFi offered crypto-collateralized loans and interest-bearing accounts. The company survived the June 2022 contagion that took down Celsius and 3AC, in part by drawing a $250M line of credit from FTX in July 2022.
That dependence killed it. When FTX collapsed in November 2022, BlockFi's exposure (including Alameda loans backed by FTT) became unrecoverable. BlockFi filed for Chapter 11 on November 28, 2022. The bankruptcy resolved with partial customer recoveries, settling in 2024 after extended litigation against the FTX estate.