Another company declares bankruptcy in the cryptocurrency market

Popular cryptocurrency platform BlockFi has officially declared bankruptcy

BlockFi is a digital asset financial services company that offers a variety of products and services to individuals and institutions. The company's main offerings include interest-bearing accounts for cryptocurrencies, trading and borrowing services, and institutional services such as OTC trading and custody solutions. They also provide crypto-backed loans to clients. BlockFi is based in the United States and is regulated by the New York State Department of Financial Services. The company's mission is to bring institutional-grade financial products to the crypto market, which they believe will help drive mainstream adoption of digital assets.

- Surprisingly, today cryptocurrency exchange BlockFi just declared bankruptcy, continuing the streak of cryptocurrency collapse that has begun since popular cryptocurrency platform FTX declared bankruptcy a few weeks ago.

 BlockFi and eight of its subsidiaries have already initiated creditor protection proceedings under Chapter 11 of the US Bankruptcy Code.. The platform is thus the latest victim since the collapse of FTX earlier this month, causing instability in the cryptocurrency market.

New Jersey-based BlockFi has confirmed that it owes more than 100,000 creditors. Where she filed a lawsuit in this matter and the FTX cryptocurrency exchange is the second largest creditor of the company, as the loans owed against it amounted to $ 275 million that were extended earlier this year.

The largest creditor of BlockFi is Ankura Trust, a company that represents creditors in various situations, with a debt of $729 million.

BlockFi had earlier halted withdrawals from its platform and acknowledged that it was greatly affected by the collapse of FTX and its related entities.

The move came weeks after FTX filed for bankruptcy protection in the US and founder Sam Pinkman resigned as CEO.

In July, FTX signed a deal with BlockFi to secure the company a $400 million revolving credit facility and an option to buy it for up to $240 million after the cryptocurrency lender suffered a major price crash in the cryptocurrency market. the year.