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BlockFi
Fintech
BlockFi was a cryptocurrency lending and interest account platform that filed for bankruptcy in November 2022 following the collapse of FTX, and completed its wind-down and creditor repayment process by 2025.
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BlockFi was founded in 2017 by Zac Prince and Flori Marquez, building a platform that let cryptocurrency holders earn interest on their crypto deposits, similar to a savings account, by lending those deposited assets out to institutional borrowers, while also offering crypto-backed loans that let customers borrow cash against their crypto holdings without needing to sell them, a structure that proved popular during the 2020-2021 period of rising crypto prices and low traditional interest rates, helping BlockFi grow rapidly and raise very substantial venture funding at a peak valuation reported around $3 billion. BlockFi's business model, like several other crypto lending platforms of that era, depended on being able to safely and profitably lend out or otherwise deploy customer deposits, which created significant risk exposure to the broader crypto market and to BlockFi's specific institutional trading counterparties. That exposure became existential in November 2022 when FTX, the crypto exchange run by Sam Bankman-Fried, and its affiliated trading firm Alameda Research collapsed; BlockFi had over $1.2 billion in assets tied up in relationships with FTX and Alameda, including a prior emergency credit line FTX had extended to BlockFi earlier in 2022 after other crypto lenders' collapses, and BlockFi filed for Chapter 11 bankruptcy protection later that month, freezing customer withdrawals. The company spent nearly two years in bankruptcy proceedings, eventually emerging in late 2023 to begin distributing recovered assets back to customers and formally shutting down its operating platform in May 2024. BlockFi's bankruptcy estate continued pursuing legal claims and asset recovery, including settling claims against FTX and Alameda for hundreds of millions of dollars, and by mid-2025 had distributed funds to the substantial majority of its U.S. customers, closing out one of the more prominent bankruptcy cases stemming from the FTX collapse.
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