Crypto lending platform BlockFi filed for Chapter 11 bankruptcy on Monday, just a few weeks after once-major crypto exchange FTX did the same. While BlockFi has been struggling to stay afloat for months now (and was even potentially going to be acquired by FTX), this latest filing signals that the bankruptcy contagion may run deeper than what the crypto industry sees at the surface.
“It is another example that the crypto winter is not over, and with the FTX debacle, it’s going to persist longer than previously expected,” Ric Edelman, founder of Digital Assets Council of Financial Professionals (DACFP) and author of “The Truth About Crypto,” said to TechCrunch.
“There is clearly a large amount of self-dealing and excessive leverage in the system, and until most of that is washed out through business failures, M&A and regulatory actions, the crypto winter will persist.” Ric Edelman, founder of Digital Assets Council of Financ …
