It’s now official: cryptocurrency lending service BlockFi and its subsidiaries are entering voluntary bankruptcy proceedings in the United States. This is more collateral damage from the FTX collapse.
It’s over for BlockFi
This procedure concerns BlockFi Inc. as well as the 8 other associated subsidiaries of the group and also foresees that the majority of the employees will be dismissed. The bankruptcy filing mentions at least 100,000 creditors and between 1 and 10 billion dollars under management.
As a reminder, on November 11, a few hours before the announcement of the bankruptcy of the FTX exchange, the loan and return company specialized in cryptos had announced the suspension of withdrawals for its users. Indeed, BlockFi would have taken out a $250 million loan in FTT, FTX’s token whose value has since plummeted by 95%.
The release tells us that the company will focus on repaying all of its creditors, including the FTX group. Until further notice, withdrawals are still pending, but BlockFi points out that it has $256 million that will be used to relaunch certain features.