BlockFi

BlockFi was a Bitcoin company in the Lending category, founded in 2017 by Zac Prince, Flori Marquez.

The Idea

A digital asset lender offering interest-bearing accounts and Bitcoin-backed loans. Advertised rates reached up to roughly 9.5% APY on stablecoin deposits, with lower, tiered rates on Bitcoin.

Early Traction

Yields far above any traditional savings account made for an extraordinary pitch, and deposits poured in as retail investors chased digital asset interest.

Peak Stats

~$14.7B in investor assets and nearly 400,000 US-based investors on the platform. BlockFi raised at a $3B valuation in its March 2021 Series D and roughly $4.5B by its August 2021 Series E, its high-water mark before the 2022 collapse.

Status Today

Filed for Chapter 11 bankruptcy on November 28, 2022, with 100,000+ creditors. Collapse triggered by customer asset rehypothecation and exposure to FTX and Alameda Research, BlockFi had lent to Alameda and had assets on the FTX platform. Zac Prince later joined Galaxy Digital to lead their retail platform.