People familiar with the matter: BlockFi is preparing for possible bankruptcy protection and plans to lay off staff

Encrypted lending firm BlockFi is preparing for a possible Chapter 11 bankruptcy filing, The Wall Street Journal reported, citing people familiar with the matter. The company also plans to cut jobs, according to people familiar with the matter. BlockFi has previously acknowledged significant exposure to FTX and its affiliated entities and will continue to suspend withdrawals. Foresight News previously reported that BlockFi signed a credit agreement with FTX US earlier this year, giving it the right to be acquired. People familiar with the matter revealed that the only condition for FTX to rescue BlockFi is to allow BlockFi funds to be escrowed to FTX. Additionally, the California Department of Financial Protection and Innovation suspended BlockFi’s lending license on Friday for at least 30 days.