Crypto lender BlockFi is preparing a potential bankruptcy filing because of its "significant exposure" to bankrupt crypto exchange FTX, the Wall Street Journal reported on Tuesday.
The lender denied rumors that a majority of its assets were held at FTX, but did acknowledge on Monday that in addition to having deposits on the platform, it had an undrawn line of credit from FTX and obligations that FTX owed it.
Last week, BlockFi paused customer withdrawals in the wake of FTX's implosion that started with a CoinDesk report that raised questions about the balance sheet of trading firm Alameda Research, FTX's sister company.
BlockFi didn't immediately respond to a request for comment about the bankruptcy filing.
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