Tag: blockfi
Crypto finance firm BlockFi files for bankruptcy following the fall of FTX
BlockFi has become the latest crypto firm to file for Chapter 11 bankruptcy a couple of weeks after pausing withdrawals on November 10th. The company is citing a “lack of clarity” around the circumstances of FTX, the collapsed firm going through its own bankruptcy process amid accusations of fraud and shoddy record-keeping. In a press release posted on Monday, BlockFi announced it’s filing for bankruptcy to help “stabilize its business.”
The bankruptcy filing submitted in New Jersey lists Ankura Trust Company as its largest creditor, to the tune of $729 million, followed by FTX US at $275 million. The SEC is fourth on the list, owed $30 million as a result of penalties laid down earlier this year.
Crypto Lender BlockFi Is Going Broke Because of FTX, Will Start Layoffs
FTX, the bankrupt crypto exchange that mismanaged customer funds and can’t account for billions in assets, is currently imploding like a dying sun. The wave of financial destruction wrought by the meltdown now threatens to swallow other companies that did business with it, and the latest victim is BlockFi, one of the…
Crypto Meltdown Continues, Next Up: BlockFi
At this time, withdrawals from BlockFi continue to be paused. We also continue to ask clients not to submit any deposits to BlockFi Wallet or Interest Accounts.” Reuters has a list of some firms who have given information about their exposure to FTX.
Read more of this story at Slashdot.