BlockFi Files for Bankruptcy. 10 Things to Know.

  • BlockFi is filing for bankruptcy, following the likes of FTX.
  • The two companies were connected after FTX bailed BlockFi out earlier this year.
  • The bankruptcy of FTX has sent ripples throughout the crypto market.
A close-up of the website for BlockFi representing bankruptcy news.

Source: Jarretera / Shutterstock.com

BlockFi is joining the ranks of crypto companies filing for bankruptcy recently thanks to the chaos caused by crypto exchange FTX.

FTX also recently filed for bankruptcy after a scathing report revealed the poor financial management of the company. Since then, several crypto-related companies have filed for bankruptcy. BlockFi is only the latest.

Let’s go over everything crypto traders need to know about BlockFi filing for bankruptcy below!

BlockFi Bankruptcy Details

  • According to a recent bankruptcy filing, BlockFi has 100,000 creditors.
  • These creditors hold loans and liabilities “ranging from $1 billion to $10 billion.”
  • Investors should note that BlockFi has an outstanding loan of $275 million to FTX US.
  • The filings also reveal that BlockFi has significant exposure to FTX and sister company Alameda Research.
  • It’s worth mentioning that FTX helped BlockFi avoid bankruptcy in July with a $400 million credit facility.
  • The largest client disclosed in BlockFi’s bankruptcy filing has a balance of about $28 million.
  • The latest valuation of BlockFi set its worth at $4.8 billion.
  • Sources close to the matter say BlockFi started speaking with restructuring agents after FTX filed for bankruptcy.
  • BlockFi’s subsidiary in the Bahamas has filed for bankruptcy alongside the company.
  • To go along with all of this news, the exchange is no longer allowing for withdrawals.

Investors looking for more of the latest crypto news will want to stick around!

InvestorPlace has all of the hottest crypto market news traders need to know about on Monday! That includes why Dogecoin (DOGE-USD) price predictions are a hot topic, as well as a collection of cryptos traders will want to keep an eye on. You can catch up on all of this news at the following links!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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