29 November 2022
Crypto lender BlockFi has filed for Chapter 11 chapter safety citing a liquidity disaster because of substantial publicity to not too long ago bankrupt crypto alternate FTX.
BlockFi says that it’s uncovered to FTX by way of loans to Alameda, a crypto buying and selling agency affiliated with FTX, in addition to cryptocurrencies held on FTX’s platform.
The agency listed its property and liabilities as being between US$1 billion and US$10 billion. The corporate has US$256.9 million in money readily available to help sure operations throughout the restructuring course of.
Based in 2017, BlockFi is described as a blockchain-based wealth administration platform for crypto buyers. Exercise on the platform is at present paused.
The corporate has raised US$1.4 billion in funding to this point in line with Crunchbase, together with US$400 million in debt financing from FTX in mid-2022 and US$850 million in two funding rounds in 2021.
“With the collapse of FTX, the BlockFi administration group and board of administrators instantly took motion to guard shoppers and the corporate.
BlockFi appears to be like ahead to a clear course of that achieves the very best end result for all shoppers and different stakeholders,”
mentioned Mark Renzi of Berkeley Analysis Group, BlockFi’s monetary advisor.
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