The FTX crash is starting to expose many other crypto companies that were involved with it. „BlockFi“ is yet another company that filed for bankruptcy, leaving its users to bust. Why did BlockFi file for bankruptcy? Let’s talk about the BlockFi crash.
Kas yra BlockFi?
BlockFi was another crypto exchange that also offered interest-bearing custodial service for cryptocurrencies. It started its business back in 2017. To date, BlockFi had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.
Why did BlockFi file for bankruptcy?
There are 2 main reasons for the reason BlockFi went bankrupt:
- The crashing crypto market
- Big exposure with FTX which went bankrupt
BlockFi filed for bankruptcy on Monday 28th of November 2022. They are the newest victim of the financial crisis brought on by FTX. BlockFi stated earlier this month that it had stopped accepting withdrawals due to “substantial exposure” to the FTX exchange as the sister company Alameda. On November 11, FTX, Alameda, and other affiliates declared bankruptcy.
Source: https://cryptoticker.io/en/blockfi-crash-why-did-blockfi-file-for-bankruptcy/