If the headline didn't make it clear enough: BlockFi just filed for Chapter 11 bankruptcy.

Here's how they ended up in this situation:

• Jan 2022, everything is great. No problems here. The crypto market has weakened slightly, but hey - we've been on a helluva run for ~2 years now, so it's about due.
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• May 2022, Terra Luna collapses and tanks the market (boooo!).
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• Jun 2022, dropping crypto prices mean BlockFi can't keep up with their loan repayments. To stay afloat, they cut 20% of staff and take a $250M loan from FTX...
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  (See where this is going?).
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• Jul-Nov 2022, FTX are giving out loans to struggling crypto platforms like candy. Everyone looks at SBF as "crypto's white knight." Though prices stay depressed, making that $250M line of credit crucial to BlockFi's survival.
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• Nov 2022, 'The Dark Knight Rises' (FTX goes under) - crypto prices drop even further, everyone pulls their money off centralized exchanges and lending platforms (like BlockFi) putting even more pressure on them.
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  ...and that $250M line of credit from FTX evaporates.

Which brings us to today, where BlockFi files for bankruptcy.

Grim. But not all that surprising.

Oh - and this just came in as we were writing this article:

A bold move on BlockFi's part. Hope everyones doing ok out there!