Successfully filed for The bankruptcy of BlockFi owing to the FTX collapse

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          On 28 November 2022, BlockFi successfully filed for bankruptcy in the US, as the dramatic collapse of FTX continues in the crypto industry to be shaken. Since BlockFi has been a cryptocurrency-leading platform, it previously announced the suspending of customer withdrawals since the business had been severely influenced by the bankruptcy of the FTX on 11 November 2022.

        In a court filing of the Chapter 11 bankruptcy, New Jersey-based BlockFi stated that there are more than 100,000 creditors with total assets and liabilities between $1 billion and $10 billion. It listed crypto exchange FTX as its second-largest creditor, with $275m owed on a loan issued earlier this year. Regarding chapter 11, BlockFi has had $256.9m in cash on hand which would be allowed the firm to develop a “reorganization plan that maximizes value for all stakeholders, including our valued clients”.

          According to its Chapter 11 plans, BlockFi Wallet customers would be paid back in full and other account holders and creditors would receive a mixture of cryptocurrency, cash, and new equity shares. Moreover, the plans also include an option for a sale of the company.

Published 07/12/2022

By Ashley Jones