According to recent reports, crypto firm BlockFi files for bankruptcy as FTX fallout spreads. Read the entire article to learn more about this news piece.
About BlockFi’s bankruptcy
“BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders,” Berkeley Research Group’s Mark Renzi said in a press statement. BRG serves as BlockFi’s financial advisor.
“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,” BlockFi previously said. BlockFi is founded by Zac Prince and he claimed that significant exposure to FTX created a liquidity crisis.
FTX’s new CEO John Ray said in a filing with the Delaware Bankruptcy Court that “in his 40 years of legal and restructuring experience,” he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”
“BlockFi’s Chapter 11 restructuring underscores significant asset contagion risks associated with the crypto ecosystem,” said Monsur Hussain, senior director at Fitch Ratings. “Two months ago we looked the ‘same.’ They shut down and have impending losses for their clients,” he said.
“Acting in the best interest of our clients is our top priority and continues to guide our path forward,” BlockFi said.
For people who do not have any idea about BlockFi, this company provides credit services to markets that do not have access to financial resources. The company aims to empower clients financially all over the globe. The company calls its customer’s clients and gives them all the necessary support and toll to help their clients make effective financial decisions for themselves. The company deals with cryptocurrency. Cryptocurrency is nothing but digital money. It is not an actual currency, rather, it is a digital currency and once you own it, you can do whatever you want to with it. The company has recently filed for bankruptcy and it seems like the company is drowning just like FTX.
FTX is a crypto exchange platform that has been built by traders for traders. The company has been founded and led by Sam Bankman Fried. The company recently filed for bankruptcy, and on the same day, SBF resigned from the company. “I didn’t mean for any of this to happen, and I would give anything to be able to go back and do things over again. You were my family,” he said. “I’ve lost that, and our old home is an empty warehouse of monitors. When I turn around, there’s no one left to talk to.”