According to the Wall Street Journal cryptocurrency Credit firm BlockFi is preparing for a possible Chapter 11 bankruptcy protection filing.
Cryptocurrency Company Will Also Make Layoffs, According to Wall Street Journal Sources
According to the news of the newspaper, which is based on people close to the process, the company also plans to make layoffs.
On Monday, BlockFi said it would continue to halt withdrawals, citing “significant exposure to FTX and associated institutional assets.”
BlockFi signed a potentially buyout loan agreement with FTX US earlier this year. bitcoin Since the collapse of its exchange FTX, BlockFi has been struggling to continue its business operations.
Last week, BlockFi founder and chief operating officer Flori Marquez said on Twitter that all of the company’s products are operational and customer withdrawals are processed.
Marquez also said that BlockFi’s line of credit comes from FTX US and that the company will be an independent entity until at least July.
The California Department of Financial Protection and Innovation suspended BlockFi’s lending license Friday as the state regulator investigates the company. The suspension will take at least 30 days.
The cryptocurrency industry has been shaken by the collapse of FTX, with several firms declaring millions of dollars in debt to the ailing firm.
In July, FTX signed an agreement with BlockFi to provide a $400 million revolving credit facility with the option to purchase for up to $240 million.
*Not investment advice.
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