Crypto lender BlockFi says it has significant exposure to FTX

Cryptocurrency lender BlockFi said on Monday it has significant exposure to Sam Bankman-Fried’s crypto exchange FTX, and associated entities, that last week filed for bankruptcy.

FTX founder Bankman-Fried also resigned as chief executive, after the biggest blowup in the crypto industry drew calls for tighter regulation.

“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at, and undrawn amounts from our credit line with FTX.US,” BlockFi said.

It added that withdrawals from its platform continue to be paused and clients have been asked to not to submit any deposits to BlockFi wallet or interest accounts.

The crypto industry has been bracing for a fallout of the FTX collapse with several firms counting their exposure in millions to the beleaguered firm.

In July, FTX had signed a deal with BlockFi to provide it with a $400 million revolving credit facility with an option to buy it for up to $240 million.