BlockFi is a provider of digital assets Decentralized financial system, also known as DeFi is their main product “Crypto deposits with high interest rates” Before the US SEC was investigated last year and had to pay a fine of $100 million.
BlockFi previously announced the suspension of customer withdrawals. By recognizing that the business has been hit hard by bankruptcy FTX which has filed for bankruptcy Shortly thereafter, BlockFi filed for Chapter 11 bankruptcy on November 28, 2022, according to a US Bankruptcy Court filing. on behalf of the Company and each of the 8 subsidiaries
In June, FTX bought BlockFi for $25 million, down 99% from the $4.8 billion valuation last raised by BlockFi. Short of capital, FTX stepped in to provide an emergency loan of $250 million, which the money allowed for the company to stay in the short term only. .
BlockFi currently only has $256.9 million in cash, which it needs to stabilize the company. By insisting that workers will continue to pay wages without interruption It will also try to allocate workers’ work. and create a plan to reduce costs
BlockFi’s filing for Chapter 11 bankruptcy will enable it to stabilize its business and fulfill its value-added reorganization plan for stakeholders in this bankruptcy filing. The document says it has more than 100,000 creditors with between $1 billion and $10 billion in assets and liabilities. The company’s largest disclosed customer is nearly $28 million.
Crypto Platform Crisis
that“Binance” platformcryptThe world’s No. 1 was ready to take on other crypto platforms like FTX, but ended up “dealing” due to poor financial status. Similar to the denial of the acquisition of crypto platforms BlockFi and Genesis, which announced that they need $1 billion in capital to solve their liquidity problems. And lowered the price to $500 million because he wanted Binance to help.
Mr.Sanchai Poplee CEO of Cryptomind Advisory Company Limited or Cryptomind He revealed that the situation that happened this time after FTX declared bankruptcy was another dire thing that happened“Crypto Bear Market” The market had previously assumed that the FTX acquisition would directly affect BlockFi, but it remains to be seen whether the FTX bankruptcy is related to other platforms. I think there are many others in the market that are at risk of bankruptcy. for the platform that makes the story“borrow” with assets less than the amount of incoming borrowing It is expected that damaged investors will have to wait a long time for the debt moratorium process to get their capital back.