Why blockfi Is Trending Today?

BlockFi, a crypto lending platform, has filed for bankruptcy. The company cited a liquidity crisis due to the collapse of FTX, another crypto exchange. BlockFi had previously received a $400 million loan from FTX. The bankruptcy filing comes after BlockFi announced it was laying off around 20% of its staff.

A U.S. court has approved a $13 million settlement between BlockFi and regulators, following the withdrawal of an objection. This resolution comes after BlockFi was accused of offering unregistered securities in the form of interest-earning crypto accounts. The settlement, which BlockFi agreed to in February, requires the company to cease offering these accounts and pay a $10 million penalty to the U.S. Securities and Exchange Commission (SEC) and a $3 million penalty to the state of New Jersey.