The sudden collapse of crypto exchange FTX Trading has dragged down the price of Bitcoin as well as caused financial problems for other platforms such as BlockFi.BlockFi Inc. has become the latest crypto firm to collapse in the wake of crypto exchange FTX’s rapid downfall.
BlockFi said in a statement that it will use the Chapter 11 bankruptcy process to “focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities,” adding that recoveries are likely to be delayed by FTX’s own bankruptcy. Chapter 11 bankruptcy allows a company to continue operating while working out a plan to repay creditors.
The petition, filed in New Jersey, lists BlockFi’s assets and liabilities at between $1 billion and $10 billion each. The company said in the statement that it had around $257 million of cash on hand, and is starting an “internal plan to considerably reduce expenses, including labor costs.” Citing “a lack of clarity” over the status of bankrupt FTX and Alameda Research, the Jersey City, N.J.-based company earlier halted withdrawals and said it was exploring “all options” with outside advisers.
FTX gave lots and lots of moola to dnc pols in a very, very blackmarket round about manner and yet you jr high drop-out journs are not in the least bit curious. FTX gave in such extra-ordinary amounts that only soros himself gave more. DMN journos start your little leathersoles.
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