Failed 2022
BlockFi
Crypto yield products are just unsecured lending with extreme counterparty risk.
Founded → Closed
2017 → 2022
Funding Raised
$1B
Industry
Crypto/Fintech
Country
USA
IdeaProof AI Failure Score
68/100
Market Fit Risk
55
Burn Rate Risk
60
Founder Risk
45
Full Analysis
BlockFi offered crypto interest accounts with yields up to 9.25% APY. When FTX collapsed in November 2022, BlockFi had significant exposure and filed for bankruptcy within weeks. The cascading failure—3AC → Voyager → FTX → BlockFi—demonstrated how interconnected crypto lending platforms had become.
Could This Failure Have Been Prevented?
IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank BlockFi.