BlockFi Declares Chapter As FTX Fallout Spreads

Cryptocurrency lender BlockFi filed for Chapter 11 chapter safety on Monday together with eight associates as contagion from the collapse of cryptocurrency change FTX spreads throughout the business.

Key Takeaways

  • BlockFi filed for chapter on Nov.28 together with eight associates.
  • Earlier within the month, BlockFi needed to pause withdrawals after the FTX collapse.
  • The platform has began shedding staff.

Earlier this month, the New Jersey-based platform paused withdrawals after asserting that it was getting ready for chapter because of its “vital publicity” to the bankrupt crypto change FTX. FTX bailed out BlockFi this yr with a $400 million revolving credit score facility and an choice to purchase it for as much as $240 million. Now the crypto lender’s CEO has resigned, and it’s shedding a lot of its employees.

FTX’s sinking ship is not solely bringing down BlockFi. There are a lot of corporations uncovered to FTX. Different crypto corporations, reminiscent of Gemini and Genesis, have additionally been affected by FTX.

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