News

BlockFi Plans To File For Bankruptcy Protection

BlockFi is reportedly planning to file for bankruptcy due to its significant exposure to FTX and Alameda Research, whose debt collection has been troubled by FTX’s bankruptcy proceedings. The company had previously halted customer withdrawals.

According to the Wall Street Journal, people familiar with the matter said that BlockFi, a cryptocurrency lender, is currently preparing to lay off employees and may be planning to file for bankruptcy protection.

As per previous news, BlockFi announced a halt to withdrawals last week as the uncertainty surrounding FTX prevented their company from operating as it should. The company issued an update on Monday saying that FTX and its affiliates are now bankrupt, in the best interest of all customers to continue to suspend much activity on the platform.

BlockFi has significant exposure to FTX and related companies and will continue to work hard to collect all debts. However, debt recovery is expected to be delayed as FTX’s bankruptcy proceedings are still ongoing. BlockFi has hired external expert advisors to take the next steps.

Earlier this year, following the bankruptcy of Three Arrows Capital, BlockFi agreed to a potential acquisition deal with FTX, providing this company with $400 million in credit.

The collapse of FTX is gradually exerting its destructive power and perhaps in the near future the market may witness a wave of “layoffs” and “liquidity crisis”, even “bankruptcy” of companies, funds and projects that come in contact with it.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

CoinCu News

Victor

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

26 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

56 minutes ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

2 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

3 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

5 hours ago

This website uses cookies.