The Downfall of BlockFi: Timeline

🥷💻 May 19, 2020 – BlockFi Hack

“The hacker compromised an employee’s phone and gained access to users’ personal information, including their names and addresses, but BlockFi says no funds were affected.” — CoinDesk

🤝 October 28, 2020 – BlockFi invests in Grayscale’s Bitcoin Trust

“BlockFi Takes 5% Stake in Grayscale’s $4.8B Bitcoin Trust. The crypto lender is only the second firm to disclose such a large GBTC stake, after Three Arrows Capital.” — CoinDesk

⚖️ July 20, 2021 – BlockFi ordered to stop opening new interest accounts in New Jersey

“Popular crypto trading and lending platform BlockFi has been ordered by the New Jersey Bureau of Securities to suspend accepting new interest account users in the Garden State.” — The Block

⚖️ July 22, 2021 – Alabama regulators accuse BlockFi of offering unregistered securities

“The state of Alabama has become the second state in the United States to raise concerns over BlockFi, a major cryptocurrency lending platform.

The Alabama Securities Commission (ASC) has issued a show-cause order to New Jersey-based company BlockFi, ASC director Joseph Borg officially announced on Wednesday.” — CoinTelegraph

⚖️ July 23, 2021 – BlockFi Faces Crackdown by a Third US State, Texas

“The Texas State Securities Board (TSSB) filed for a cease-and-desist order against BlockFi, BlockFi Trading and BlockFi Lending. The cease-and-desist hasn’t taken effect, and won’t unless a judge signs off after a hearing in October, CoinDesk has learned. The filing gives the company a chance to formally respond to the allegations. The company is allowed to continue operations until the hearing.” — CoinDesk

⚖️ July 24, 2021 – Vermont Joins Ranks of States Probing Crypto Lender BlockFi

“Embattled cryptocurrency lender BlockFi is facing scrutiny from regulators in a fourth state, Vermont, over the legality of its interest account product.

According to BlockFi’s website, securities regulators in Vermont have issued an order on the matter. What that order said is not yet known.” — CoinDesk

⚖️ July 30, 2021 – Kentucky becomes fifth state to ask if BlockFi’s interest accounts are securities, putting new customers on hold

“According to a Friday tweet from BlockFi, the Kentucky Department of Financial Institutions has issued the firm an order barring it from soliciting or offering securities in the state. Even though the firm believes its interest account product is not a security, it will stop offering it to new customers in Kentucky, it said.” — The Block

💸 February 14, 2022 – BlockFi pays $100M in Settlement With SEC

“The Securities and Exchange Commission announced Monday that it fined crypto lending firm BlockFi $100 million, and now the firm plans to register with the agency to offer clients its popular high-yield crypto savings product.” — The Block

🤔 May 2022 – BlockFi CEO, Zack Prince withdraws funds

“Zac Prince withdrew around $9.2 million from BlockFi in April 2022, according to the presentation.” — The Block

💸 June 17, 2022 – BlockFi liquidates 3 Arrows Capital

“Crypto lender BlockFi confirmed Thursday it recently liquidated a “large client” amid reports that troubled crypto hedge fund Three Arrows Capital failed to meet margin calls.” — CoinDesk

🤝 June 21, 2022 -BlockFi Receives $250M Credit Facility From FTX

“Crypto lending platform BlockFi announced that it has secured a $250 million revolving credit facility from FTX, BlockFi CEO Zac Prince said in a tweet on Tuesday, and the company subsequently announced in a press release.” — CoinDesk

💀 July 2, 2022 – Three Arrows Capital Files for Bankruptcy

“Three Arrows Capital, a crypto hedge fund, filed for Chapter 15 bankruptcy in the the Southern District of New York federal court late Friday after weeks of speculation about the company’s solvency.” — CoinDesk

🤔 August 2022 – Zack Prince withdraws more funds

“He then withdrew an additional $1.36 million at then-market prices in August. He used the funds to pay taxes, the company said.” — The Block

⏸️ November 10, 2022 – BlockFi suspends withdrawals after FTX collapse

“Crypto lender BlockFi suspended withdrawals and will not be able to operate business as usual given the lack of clarity over the status of FTX, the company said on Twitter.” — The Block

🚫 November 12, 2022 – California Finance Regulator Revokes BlockFi’s Lending License

“California’s Department of Financial Protection and Innovation said Friday it was moving to suspend BlockFi’s lending license as the regulator investigates the crypto lender.” — CoinDesk

💀 November 28, 2022 – BlockFi files for bankruptcy protection

“Crypto lender BlockFi has filed for Chapter 11 bankruptcy protection.

According to the firm’s bankruptcy petition, BlockFi has claimed more than 100,000 creditors as well as between $1 billion and $10 billion in both assets and liabilities.” — The Block

✍️ November 29, 2022 – BlockFi Sues Sam Bankman-Fried for Robinhood Shares

“Cryptocurrency lender BlockFi, which filed for Chapter 11 bankruptcy protection on Monday, on the same day sued FTX founder Sam Bankman-Fried’s Emergent Fidelity Technologies holding company for Robinhood Markets (HOOD) shares held by the company and pledged to BlockFi as collateral.” — Coindesk