FTX: His fall makes another victim

The FTX debacle has caused real upheaval in the cryptocurrency world. The crypto ecosystem has indeed become fragile. Digital lender BlockFi, for example, has been in bankruptcy since Monday. This company is therefore added to the long list of crypto companies forced to declare bankruptcy since the fall of FTX. During a court hearing, BlockFi’s lawyers made a startling statement. FTX and Alameda owe him over a billion.

BlockFi admits it has $355 million locked up on FTX, in addition to a $671 million loan to Alameda

BlockFi in bankruptcy proceedings

Following the various financial problems caused by the fall of FTX, BlockFi decided to file for bankruptcy protection on November 28. According to the explanations, this measure will allow the company to stabilize its activity and optimize the value for all stakeholders.

By doing so, BlockFi affirms that it is acting in the best interests of its customers. Concretely, the company’s customers could recover a substantial part of their investments. In fact, the company said it hired Kirkland & Ellis and Haynes & Boon to advise it through this difficult time.

Luna’s Collapse: The Beginning of It All (Including the Fall of FTX)

The fall of FTX is unequivocally the cause of BlockFi’s bankruptcy. For some, however, everything has already started with the collapse of Terra Luna. The fact is that this year BlockFi has already paid a lot for the consequences of the fall of Terra Luna. And just as she recovered, the FTX collapse appeared. The fall of FTX is therefore only the straw that broke the camel’s back for BlockFi.

BlockFi has filed for bankruptcy, but big companies in the crypto market are already taking an interest. Curve and Binance are already on the list of potential buyers of BlockFi bank cards. To be continued…

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