Media learn about the possible bankruptcy of the BlockFi platform

BlockFi previously suspended withdrawals due to the bankruptcy of FTX

16.11.2022 - 07:00

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2 min

What’s new? Crypto lending platform BlockFi is about to file for Chapter 11 bankruptcy in the United States. In addition, the company plans to lay off some of its staff before bankruptcy. This is reported by The Wall Street Journal, citing the company’s own sources.

News on the WSJ website

What is known about the situation? BlockFi suspended its withdrawal feature on November 11, citing uncertainty in the situation with the FTX crypto exchange. FTX Group filed for bankruptcy on the same day.

On November 14, BlockFi stated that FTX and related entities have significant liabilities to the platform, including the FTX US line of credit, assets on FTX, and outstanding obligations from Alameda Research. According to WSJ sources, the platform provided millions of dollars in loans to Alameda Research that were partially secured by FTT tokens.

In addition to bankruptcy, BlockFi is exploring other resolution scenarios with financial counsel Berkeley Research Group and law firm Haynes & Boone.

On November 15, analysts at Lookonchain allowed the possibility that the Gate crypto exchange may repeat the fate of the bankrupt exchange FTX. Experts came to this conclusion based on the analysis of the platform’s assets and transactions. On the eve of the release of the reserves report, Gate received a large transfer in ETH the Crypto.com crypto exchange.

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