The bearish momentum that began with the collapse of the FTX exchange becomes more complex. As the collapse of FTX continues to affect many platforms BlockFi one of the most notable among them. BlockFi has filed a lawsuit against former CEO Sam Bankman-Fried after filing for Chapter 11 bankruptcy.
Having filed for bankruptcy, BlockFi has filed a lawsuit against Emergent Fidelity Technologies. It is also among the information that this company is the holding company of Sam Bankman-Fried. It was also learned that BlockFi is linked to Robinhood shares, which were previously shown as collateral.
SBF managed to collect a 7.6 percent stake in Robinhood in May. Purchased a full $648 million through Emergent Fidelity Technologies.
The lawsuit was filed, with BlockFi reportedly seeking endorsement collateral from Emergent as part of its November 9 deal. It looks like Emergent accepted a payment plan that wasn’t covered by BlockFi.
BlockFi was asking SBF to hand over $575 million worth of Robinhood shares.
After SBF entered into a collateral agreement with BlockFi Robinhood It was also revealed that he tried to raise funds by selling his shares. As a matter of fact, we would like to remind you that all of these developments were before the collapse of the FTX stock market.
What Did BlockFi Do Before Bankruptcy?
How long the effects of the FTX stock market crash will last is still a mystery. On the other hand, the problems experienced at BlockFi were an expected end. That’s why filing for Chapter 11 bankruptcy didn’t make much of an impact. but the crypto lender’s $239 million for filing cryptocurrency frightened the detail he sold.
Koinfinans.com As we have reported, it was stated that the purpose of this sale was made in order to finance the company without taking any loan.
In addition, the firm continued to warn 250 workers that their jobs were at risk.
While the community was just recovering from FTX’s collapse, BlockFi’s latest filing was expected to cause some concern among investors. But that kind of fear has yet to be seen clearly.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.