Another loser from FTX’s collapse: Crypto firm BlockFi has filed for Chapter 11 bankruptcy protection following the collapse of the company’s putative buyer, FTX.
● Rumors of crypto’s death were premature
● This is how a 28-year-old young woman found herself at the center of the financial collapse that is shaking the world
● The crisis of the FTX exchange is not related to the crypto market but to greed Interpretation
In the filing, the company stated that it has more than 100,000 creditors, while its liabilities and assets range widely between one billion dollars and 10 billion dollars.
The crypto company, which has a trading platform and an interest-bearing cryptocurrency custodial service, was one of many companies that faced severe liquidity problems after the collapse of Three Arrows Capital.
Earlier this month BlockFi though She suspended withdrawals in what she defined at the time as a “pause”, due to severe liquidity problems.
BlockFi was one of the first companies to be “rescued” by ex-billionaire Sam Bankman-Fried’s collapsing FTX in a deal initially reported to be worth up to $240 million. The deal, which included a $250 million credit facility with an option to purchase, saved BlockFi from declaring bankruptcy at the time. According to a later CNBC report, the true value of the deal is significantly lower and ranges between $25 million and $50 million.
BlockFi’s lawyers have already filed a “Notice of Appearance” during the FTX bankruptcy case in the Delaware District Bankruptcy Court (Notice of Appearance, a document that informs the court and the other parties involved that they are participating in the case).