Some individuals blamed podcaster Anthony Pompliano for promoting the crypto lending platform recently.
Members of the crypto community responded in varying ways to BlockFi’s bankruptcy filing, a crypto lending platform that fell during the bear market.
Matt Odell, a podcaster, offered a different explanation for why BlockFi filed for bankruptcy despite citing the FTX contagion.
According to Odell’s writing, the lending platform went out of business as a result of lending customer funds to high-risk traders who recklessly used leverage. Leverage kills, trusted third parties are security holes, and this is a story as old as Bitcoin,” he added.
Mario Nawfal pointed out in a tweet that many community members had anticipated BlockFi’s bankruptcy filing. Nawfal claims that the lending and yield-earning platform, which was barely able to survive after the Voyager and Celsius failures, has ended its era with the bankruptcy filing.
Since many people ran out of money, they turned to podcaster and entrepreneur Anthony Pompliano, who showed them the lending platform. After listening to Pompliano’s podcast that recommended BlockFi, a Twitter user claimed that they had lost most of their savings.
Pompliano advised another member of the community to diversify their portfolio by investing in FTX, BlockFi, and Bitcoin BTC tickers down $16,874.They made the observation that two of the three have already reached zero.
Erik Voorhees, the founder of ShapeShift, also responded to news that the Securities and Exchange Commission (SEC) is one of BlockFi’s creditors. Voorhees proposed that the SEC repay BlockFi for $70 million in order to assist the users that they should be protecting.
In the meantime, the crypto lending platform has filed a lawsuit against Emergent Fidelity Technologies, the holding company of former FTX CEO Sam Bankman-Fried. BlockFi intends to acquire the Robinhood shares that were utilized as collateral earlier this month.
