Amid the ongoing repercussions of FTX’s bankruptcy filing, another Bitcoin platform has announced its bankruptcy. The company received a $400 million line of credit from FTX earlier this year.
FTX collapse brought the end of this Bitcoin platform
Crypto credit institution BlockFi declared bankruptcy on November 28, shortly after the FTX crash. The company, which has requested Chapter 11 bankruptcy protection, has stated that it hopes to get back on its feet by continuing its operations in the meantime. According to the press release, BlockFi has $257 million in cash reserves.
According to the company’s petition, BlockFi executives estimate the company has more than 100,000 creditors. Executives estimate the company has between $1 billion and $10 billion, both actively and passively. BlockFi also shared the details of the bankruptcy filing on Twitter. “As part of our restructuring efforts, we will focus on recovering all liabilities owed to BlockFi by counterparties, including FTX,” he said.
cryptocoin.comAs you follow, FTX, one of the largest centralized exchanges, declared bankruptcy on November 11. It is estimated that it owes more than $1 billion to its users. BlockFi, on the other hand, says in a statement on its website that it will work for the restructuring:
Since the pause, our team has explored every strategic option and alternative available to us and has remained laser focused on our main goal of doing our best for our clients. These Chapter 11 cases will enable BlockFi to stabilize the business and offer BlockFi the opportunity to complete a restructuring plan that maximizes value for all stakeholders, including our valued customers.
Among BlockFi creditors in the SEC
Among the company’s largest creditors is West Realm Shires, the operating name of FTX.US, which has $275 million in unsecured receivables. In addition, the SEC also has $30 million in unsecured claims. The names of the vast majority of the other top 50 creditors have yet to be revealed. Meanwhile, the biggest creditor is Ankura Trust Company, which currently expects $730 million.
BlockFi, which suspended withdrawals a few weeks before FTX’s bankruptcy, had a rough year. The company liquidated a major client earlier this year. Earlier this year, he needed a line of credit from FTX to survive. While announcing the suspension of withdrawals, BlockFi warned its customers not to deposit funds into their wallets or interest accounts.
BlockFi also denied that most of their reserves are in FTX. The exchange says some of these are on FTX:
We have significant exposure to FTX and related corporate entities, including liabilities owed to us by Alameda, assets held at FTX.com, and amounts not withdrawn from our line of credit with FTX.US.
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