BlockFi Files for Bankruptcy Following FTX Crash

Thus, BlockFi has adopted the instance of firms like Celsius and Three Arrows Capital.

• The cryptocurrency lender’s troubles started because the bear market intensified earlier this yr, particularly after the Terra collapse.
• There appeared to be a lifeboat thrown by FTX a couple of months down the highway because the change offered a $400 million mortgage to BlockFi and had the choice to buy the corporate for as much as $240 in a while.
• Nonetheless, the as soon as SBF-led large crashed spectacularly earlier this month, which led to a brand new wave of issues.
• Some reviews emerged claiming that BlockFi was exploring submitting for chapter, however firm reps refuted them at first.
• But, the crypto lender has certainly filed for Chapter 11 chapter safety in a New Jersey court docket, as reported by CNBC.
• The submitting reads that BlockFi had over 100,000 collectors and its liabilities had been someplace between $1 billion and $10 billion.

“We do have vital publicity to FTX and related company entities that encompasses obligations owed to us by Alameda, belongings held at FTX.com, and undrawn quantities from our credit score line with FTX.US.” – an organization spokesman had beforehand mentioned.

• This yr has already seen its justifiable share of chapter filings within the crypto business. Celsius was among the many first, adopted by 3AC, Voyager, and extra.

This text first appeared on CryptoPotato

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