BlockFi vs Coinbase and Voyager vs Coinbase: Lenders vs an Exchange
Short answer: You can't choose BlockFi or Voyager over Coinbase today. Both were crypto lenders that paid interest on deposits by lending customer crypto out, and both filed for Chapter 11 bankruptcy in 2022 (Voyager in July, BlockFi in November), freezing customer funds. Coinbase is an exchange and custodian, a different business model. The lasting lesson: high yield on crypto usually means someone else is using your coins, and custody terms decide what happens if the company fails.
What BlockFi and Voyager were
Both companies were popular in 2020 and 2021 because they paid eye-catching interest on crypto deposits, something a plain exchange account did not.
- BlockFi offered BlockFi Interest Accounts, crypto-backed loans and a rewards credit card. In February 2022 it agreed to pay $100 million in penalties to the SEC and state regulators over its interest accounts, which the SEC said were unregistered securities offerings.
- Voyager Digital was a trading app that also paid interest on deposits. It lent large amounts of customer crypto to other firms, including the hedge fund Three Arrows Capital, which defaulted.
In 2022 crypto prices fell sharply and several big borrowers collapsed. Voyager filed for Chapter 11 in July 2022 (filed late July 5, widely dated July 6). BlockFi, which had exposure to FTX, filed on November 28, 2022, shortly after FTX collapsed. In both cases customers could not withdraw while the bankruptcies played out.
BlockFi vs Coinbase vs Voyager at a glance
| BlockFi | Voyager | Coinbase | |
|---|---|---|---|
| Business model | Crypto lender (interest accounts, loans) | Trading app plus crypto lending | Exchange and custodian |
| Main draw | High interest on deposits | Commission-free trading and interest | Buying, selling and holding crypto; staking |
| What happened | Chapter 11, Nov 28, 2022 | Chapter 11, July 2022 | Operating; public company (Nasdaq: COIN) |
| Status today | Not operating for new customers | Not operating for new customers | Available in the US |
How a lender differs from an exchange
When you deposited crypto with BlockFi or Voyager to earn interest, the company typically lent it out or used it to generate returns. The interest came from that activity. If borrowers didn't repay, the losses landed on the company, and in bankruptcy, depositors became creditors waiting in line.
An exchange like Coinbase makes money mainly from trading fees, spreads, subscriptions and other services. Its job with customer crypto is custody: holding it so you can trade, send or withdraw it. Coinbase is regulated in New York (it has held a BitLicense since January 2017, and its custody arm is a New York limited-purpose trust company), and as a public company it files reports with the SEC describing how it holds customer assets.
Could Coinbase go bankrupt? The 2022 disclosure
This came up a lot in "Coinbase vs BlockFi" discussions. In its May 2022 quarterly report (10-Q), Coinbase added a risk factor warning that, in the unlikely event of a bankruptcy, custodially held crypto could be subject to bankruptcy proceedings and customers could be treated as general unsecured creditors. CEO Brian Armstrong said at the time that Coinbase had no risk of bankruptcy and that the language reflected a new SEC accounting requirement, and that legal protections for crypto held this way had not been tested in court.
The practical takeaway isn't that Coinbase is like BlockFi. It's that any custodial account depends on the custodian's legal structure and solvency. Crypto balances are not FDIC-insured on any exchange.
Lessons from BlockFi and Voyager
- Ask where the yield comes from. If you can't explain who pays the interest and why, you're taking risks you can't see.
- "Not your keys" is a real risk. On any custodial platform, your claim is against the company. For long-term holdings, consider a self-custody wallet; see our wallets guide and Coinbase Wallet vs Coinbase.
- Read custody terms. Look for whether assets are held for you or can be lent or used by the platform.
- Be wary of insurance language. Bank deposit insurance doesn't cover crypto holdings.
- Spread your risk. Don't keep everything on a single platform.
Choose Coinbase if…
- You want a regulated US exchange for buying, selling and holding crypto, rather than a yield product.
- You want the option to move coins to your own wallet at any time (network fees apply, and holds can apply to recently bank-funded purchases).
If you're comparing Coinbase with other platforms still operating, see Gemini vs Coinbase, Kraken vs Coinbase or our full comparison hub.
Bottom line
BlockFi and Voyager weren't really Coinbase competitors in the same business; they were lenders that paid yield by taking risk with customer deposits, and that risk caught up with them in 2022. Coinbase is an exchange and custodian. The best protection is understanding exactly what a platform does with your coins and keeping long-term holdings in custody you trust.
Many BlockFi and Voyager users also bought heavily near the 2021 peak, then faced frozen accounts during the 2022 drop. Cycles like that repeat; our crypto market cycles guide explains how they tend to unfold.
FAQ
Is BlockFi still in business?
BlockFi filed for Chapter 11 bankruptcy on November 28, 2022, and is not operating for new customers. If you were a customer, follow official bankruptcy-case communications about distributions.
What happened to Voyager vs Coinbase?
Voyager Digital filed for Chapter 11 in July 2022 after a major borrower, Three Arrows Capital, defaulted. Customer funds were frozen during the bankruptcy. Coinbase continued operating.
Was BlockFi safer than Coinbase?
No. BlockFi's model of lending out deposits to pay interest added risk that an exchange account doesn't carry in the same way, and it ended in bankruptcy. That said, no custodial platform is risk-free.
Voyager vs Coinbase Pro: which was cheaper?
The comparison no longer applies. Voyager went bankrupt in 2022, and Coinbase Pro shut down in late 2023, with its trading moved to Coinbase Advanced. See our Coinbase fees guide for today's fee structure.
Can I earn interest on crypto at Coinbase?
Coinbase offers staking on some assets in most US states; check the eligibility page for your state. Staking rewards are different from BlockFi-style lending and have their own terms and risks, so check the details in your app.
Sources
- Fortune — BlockFi files for bankruptcy (checked Nov 2026)
- CNBC — Voyager Digital files for Chapter 11 (checked Nov 2026)
- SEC — BlockFi agrees to pay $100 million in penalties (checked Nov 2026)
- CoinDesk — Coinbase 10-Q bankruptcy disclosure and CEO response (checked Nov 2026)
- SEC — Coinbase Global annual report (10-K) (checked Nov 2026)
- Coinbase Help — Staking eligibility (checked Nov 2026)