Fears of contagion in cryptocurrency markets continue to grow after BlockFi filed for bankruptcy on Monday due to the company's financial ties to failed exchange FTX.
as his former company entered bankruptcy proceedings, BlockFi's ties to FTX worsened its financial situation.and unable to access its credit facility. It was then forced to halt withdrawals from its platform and asked clients to not make deposits to their digital wallets or accounts.
FTX Group has named a slate of new independent directors to oversee the collapsed crypto empire and said its bankruptcy may involve more than a million creditors. One of those creditors is the federal government. In February, BlockFi agreed to pay the Securities and Exchange Commission a total of $100 million in penalties after it failed to register the offers and sales of its retail crypto lending product. The company still owes $30 million to the SEC as it enters bankruptcy proceedings.The bankruptcy process is intended to give the company the stability needed to restructure, and BlockFi says it has $256.
It's unclear at this time what impact the collapse of FTX and Alameda Research will have on BlockFi's bankruptcy proceedings and vice versa. BlockFi owes FTX $275 million, while Alameda Research owes BlockFi for the $680 million in loans it received before its implosion, according to bankruptcy filings.While BlockFi's exposure to FTX dragged it into bankruptcy, it may not have featured similar failures of corporate controls that FTX had.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto Lender BlockFi Files for Bankruptcy as FTX Fallout ContinuesJUST IN: BlockFi has filed for bankruptcy days after FTX, which had once extended a line of credit to the troubled crypto lender, filed for bankruptcy itself. nikhileshde reports
Read more »
Crypto finance firm BlockFi files for bankruptcy following the fall of FTXCrypto’s cold winter claims another company.
Read more »
BlockFi files for bankruptcy, as many expected, cites FTX collapse for its troublesBlockFi files for bankruptcy just weeks after denying it had been significantly exposed to FTX.
Read more »
BlockFi files for bankruptcy as FTX contagion grips crypto markets | CNN BusinessCrypto lender BlockFi filed for bankruptcy Monday, becoming the latest casualty of the financial contagion unleashed by the collapse of Sam Bankman-Fried's empire.
Read more »
FTX Collapse Sparks Big Crypto Bankruptcy at BlockFiYet another crypto firm has filed for bankruptcy, this time the cryptocurrency lending business BlockFi.
Read more »