Thunder again! Cryptocurrency lender BlockFi files for bankruptcy

Abstract: On Monday (November 28), cryptocurrency lending platform BlockFi filed for Chapter 11 bankruptcy in New Jersey, the United States, the latest cryptocurrency company to collapse after the rapid collapse of cryptocurrency exchange FTX.

Cryptocurrency lending platform BlockFi filed for Chapter 11 bankruptcy in the U.S. state of New Jersey on Monday (November 28), the latest cryptocurrency company to collapse following the swift collapse of cryptocurrency exchange FTX.
BlockFi said the company began a restructuring process to achieve stability. The petition, filed in New Jersey, lists BlockFi’s assets and liabilities at between $1 billion and $10 billion each. The company said in a statement that it had about $257 million in cash on hand and was initiating an "internal program to significantly reduce expenses, including labor costs."
Cryptocurrency lending platform BlockFi still owes the SEC $30 million in fines, filings show. In February, BlockFi agreed to pay a $100 million fine to settle an investigation by the SEC.
Days after the FTX crash, BlockFi suspended withdrawals, explaining that it had “significant exposure” to FTX, including undrawn lines of credit and assets held on the FTX platform.
BlockFi received a capital infusion from the now-defunct FTX US in July and also provided collateral to Sam Bankman-Fried’s trading firm, Alameda Research.
BlockFi, based in Jersey City, New Jersey, was founded in 2017, and as of last year, the company claims more than 450,000 retail customers can get loans in minutes, with no credit checks required. “We’re just getting started,” BlockFi co-founder Flori Marquez told The New York Times in September. But its business has come under close scrutiny from regulators.
In 2022, several influential cryptocurrency companies went bankrupt one after another, causing panic in the market and causing the value of cryptocurrencies such as Bitcoin to plummet. Mining institutions have also been hit, with the decline in cryptocurrencies caused by the bankruptcy of FTX putting more pressure on their profitability. Frank Holmes, executive chairman of Canadian encryption miner Hive Blockchain Technologies, warned that the cryptocurrency industry will face more bankruptcies.
#FTX Explosive Thunder#

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