The FTX contagion simply claimed one other crypto agency.

BlockFi will file for Chapter 11 chapter safety later at the moment, firm supply says Decrypt.

In an official announcement, the New Jersey-based firm stated it can “give attention to gathering all obligations owed to BlockFi,” however that “FTX collections might be delayed” attributable to ongoing chapter proceedings. to the fallen crypto change.

The crypto lender can also be shedding a big a part of its employees, the supply stated.

BlockFi, which permits customers to earn yield by depositing dormant cryptocurrencies on the platform, halted withdrawals for the primary time on Nov. 11, the identical day FTX filed for chapter. “We, like the remainder of the world, found this case by way of Twitter,” BlockFi wrote in a letter on the time. “We’re shocked and appalled by the information relating to FTX and Alameda.”

Virtually per week later, an organization supply stated Decrypt that he was contemplating submitting for chapter, given his excessive publicity to FTX.

BlockFi’s hyperlinks with FTX

In June, BlockFi introduced a $250 million revolving line of credit score with FTX a couple of week after the crypto lender lower its workforce by about 20%. He stated he was downsizing attributable to “dramatically altering macroeconomic circumstances world wide.”

There was additionally speak of an outright acquisition in July, however this was denied by Zac Prince BlockFi CEO.

BlockFi is not the one platform that FTX has bailed out. The crypto change additionally supplied a $120 million mortgage in August 2021 to the Liquid Group after the latter suffered a $90 million hack. Liquid was later acquired by FTX in Could 2022.

The crypto platform suspended withdrawals on November 15 and has not reopened them but.

Voyager Digital additionally secured a $500 million line of credit score in June from FTX sister firm Alameda Analysis. Voyager then filed for chapter on July 6.

Keep updated with crypto information, get every day updates in your inbox.

Supply :

Leave A Reply