Blockfi becomes another victim of the FTX collpase with bankruptcy filing

The FTX downturn is gradually spreading to much cryptocurrency firms arsenic BlockFi is the adjacent steadfast to record for bankruptcy. 

BlockFi said Nov. 28 that it filed for Chapter 11 bankruptcy extortion successful the US Bankruptcy Court for the District of New Jersey and would question to retrieve each obligations owed to BlockFi by its counterparties, including FTX. 

“Due to the caller illness of FTX and its ensuing bankruptcy process, which remains ongoing, the Company expects that recoveries from FTX volition beryllium delayed,” BlockFi said

In addition, BlockFi reported having $256.9 cardinal successful currency connected hand, which should supply capable liquidity during the “restructuring.”

As of the recent bankruptcy filing by BlockFi CEO Zachary Prince, BlockFi has 100,000+ creditors, $1-10 cardinal successful liabilities, and $1-10 cardinal successful assets.

While enactment connected the level remains paused, the institution said it aims to stabilize its concern with the bankruptcy filing and aims to implicit a restructuring transaction that maximizes worth for each clients and different stakeholders.

BlockFi

100,000+ creditors
$1-10bln successful liabilities
$1-10bln successful assetshttps://t.co/3hBTUHfyQ0 pic.twitter.com/FkEHo056iz

— db (@tier10k) November 28, 2022

The filing besides revealed that the Securities and the Exchange Commission (SEC) is 1 of the creditors with $30 million. According to a source, the crypto lender is besides laying disconnected a important information of its staff. 

BlockFi connected the brink of imaginable bankruptcy for the past fewer weeks

The crypto lender faced difficulties aft the fashionable crypto speech FTX collapsed, and BlockFi paused lawsuit withdrawals connected Nov. 11. That time, however, BlockFi stood its ground, clarifying that determination was a deficiency of clarity regarding the FTX issue. 

Prior to that, BlockFi COO Flori Marquez informed investors that each deposits, withdrawals, trading, and lending protocols are active

However, the Crypto steadfast announced connected November 14 that it had “significant exposure” to FTX. At that time, BlockFi confirmed that it had capable liquidity to research each options and engaged extracurricular advisors similar Haynes and Boone to assistance with its adjacent moves. 

The station Blockfi becomes different unfortunate of the FTX collpase with bankruptcy filing appeared archetypal connected CryptoSlate.