Stuart Alderoty, Ripple’s General counsel has slammed the U.S. Securities and Exchange Commission “SEC” for its alleged role in <a href="https://zycrypto.com/blockfi-has-10-billion-in-assets-and-liabilities-and-100000-creditors-bankruptcy-filing/">bringing BlockFi to its knees</a>.

The U.S. Securities and Exchange Commission (SEC) may use the failure of lender BlockFi as an object lesson for why there should be clear oversight of the crypto sector.

The Financial Times stated, based on legal correspondence, that FTX’s sibling company Alameda Research was the one who took the loan.

According to BlockFi executives, the company had up to 100,000 creditors and a range between $1 and $10 billion in assets and liabilities.

“In addition to the loan arrangement, and the $275 million that was drawn, BlockFi acted as a lender to Alameda, which is an FTX trading subsidiary, and they also had crypto on the FTX platform,” Sussberg said in court. “Specifically, BlockFi had $671 million in outstanding loans that are defaulted to Alameda and $355 million in digital assets that, unfortunately, are now frozen on the FTX platform.”

The crypto-friendly US-based bank <a target="_blank" href="https://cryptonews.com/tags/silvergate/">Silvergate</a> had less than $20m in exposure to the now-bankrupt US-based crypto lender <a target="_blank" href="https://cryptonews.com/tags/blockfi/">BlockFi</a>. But with yet another bankruptcy in the space, more people are now asking if <a target="_blank" href="https://cryptonews.com/tags/nexo/">Nexo</a> – one of the last major crypto lenders still standing – will be the next to go down.

The Financial Times reported that the troubled cryptocurrency lender BlockFi has filed a lawsuit against Sam Bankman-Fried’s Emergent Fidelity Technologies over Robinhood (HOOD) shares held by the company and pledged to BlockFi as collateral Tuesday.

Silvergate BlockFi News: With the FUD around further <a href="https://coingape.com/tag/ftx/">FTX</a> contagion effect dragging on, the Silvergate BlockFi relationship is already creating some uncertainty. On Monday, crypto lender <a href="https://coingape.com/breaking-blockfi-to-file-for-bankruptcy-amid-ftx-contagion-effect/">BlockFi officially filed for chapter 11 bankruptcy</a> owing to the FTX contagion effect. Meanwhile, it remains to be seen how other firms that are heavily exposed to FTX respond in the coming days. Also, the Silvergate stock price dipped over news of the exposure to the crypto lender.

Crypto lender BlockFi filed for Chapter 11 bankruptcy protection on Monday, <a href="https://www.coindesk.com/policy/2022/11/28/ftx-fallout-continues-as-crypto-lender-blockfi-declares-bankruptcy/">saying</a> it<b> </b>hoped to restructure while it continues its operations. BlockFi received a $400 million line of credit from bankrupt exchange FTX earlier this year and has about $257 million in cash on hand, according to <a href="https://www.businesswire.com/news/home/20221128005451/en/">a press release</a>.

As crypto lending platform BlockFi filed for bankruptcy, members of the crypto community reacted with mixed feedback as another platform fell during the current bear market.&nbsp;