Crypto loan company BlockFi plans to conduct research for bankruptcy filing.
The crypto company, which is financially intertwined with FTX, may also lay off its staff.
BlockFi Can Join the Caravan of Bankrupt Companies
Sources said that after the crypto loan company stopped withdrawing customer deposits, it admitted that it had invested significantly in the bankrupt crypto currency exchange FTX.
BlockFi began researching for a potential bankruptcy filing following the liquidity crisis experienced.
The company halted withdrawals last week, saying it would not be easy to conduct business as usual given the uncertainty about FTX.
It was also alleged that BlockFi was planning to lay off some of its employees and was preparing for a Chapter 11 bankruptcy filing.