According to recent reports, BlockFi is going to file for bankruptcy very soon. The crypto lender is also planning to lay off its employees in order to cut down losses. Read the entire article to find out more about this news piece.
About the bankruptcy
In the past, BlockFi always denied rumors of having a majority share of assets of FTX which is also a crypto exchange platform. Flori Marquez who is the founder and the COO of the platform assured everyone that the company was an independent entity despite having the $400 credit line with FTX US.
“We do have significant exposure to FTX and associated corporate entities that encompass obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,” BlockFi said. When the company was asked about the bankruptcy filing, it did not respond.
About BlockFi
This company came into existence in the year 2017. For people who do not know much about the company, it basically provides credit services to markets that do not have adequate access to financial products. The company deals with cryptocurrency. Cryptocurrency is digital money and once you own it, you can do anything you wish to do with it. The company aims to become the best in its field of work and therefore has professionals with talent and skills, working for the company and helping it grow. The company has offices in various locations which included New York, New Jersey, Singapore, etc.
About FTX
FTX is a cryptocurrency exchange platform and it has been built by traders for traders. The platform has recently experienced a massive downfall and has filed for bankruptcy. Its CEO and founder Sam Bankman Fried has resigned and by the looks of it, the company has no chance at survival in the market. It was the third largest crypto exchange platform in the world and its downfall has made other companies very strict about being transparent. The company’s employees are extremely upset with their founder, SBF. Mr. Bankman-Fried later apologized to employees in a late-night Slack message. “I completely understand that this is a tough time for all of you,” he wrote. In an email Tuesday, Mr. Bankman-Fried told the Journal: “During the crash, many of my internal communications were being leaked onto Twitter, making it difficult for me to address the whole company with information that wasn’t yet ready for the public.”
