The dramatic collapse of the cryptocurrency company FTX at the beginning of November continues to have repercussions throughout the virtual currency industry.
Another of the crypto companies, BlockFi, declared this Monday in US bankruptcy
The company had already halted most activity on its platform, citing “significant exposure” to FTX.
BlockFi said it is seeking judicial protection to restructure, settle its debts and recover money for investors.
The company received a bailout from FTX earlier this year when cryptocurrency values plummeted.
But FTX, a digital currency trading platform, had its own problems this month, when people rushed to withdraw money from the site amid doubts about their finances.
The so-called “king of cryptocurrencies” Sam Bankman-Fried, who was founder and CEO of He resigned from FTX, resigned, and the firm filed for bankruptcy.
ReutersThe crash shook confidence in the crypto industry and triggered an investigation by regulators.
BlockFi, which offered loans and other financial services backed by borrowers’ crypto assets, described FTX’s collapse as “shocking.”
Millionaire debts
In the court filing, New Jersey-based BlockFi said it owes money to more than 91,000 creditors.
Listed FTX as its second largest creditor, with $258 million dollars owed on a loan extended earlier this year.
Also owes $15 million to the US financial regulator, the Securities and Exchange Commission, which earlier this year found that the company failed to properly register its products and misled the public about the levels of risk in its portfolio of loans and credit activity.
In the court filing, New Jersey-based BlockFi said it owes money to more than 91,000 creditors.
Listed FTX as its second largest creditor, with $258 million dollars owed on a loan extended earlier this year.
Also owes $15 million to the US financial regulator, the Securities and Exchange Commission, which earlier this year found that the company failed to properly register its products and misled the public about the levels of risk in its portfolio of loans and credit activity.
BlockFi said the Chapter’s bankruptcy filing 15 would allow the company to develop a “reorganization plan that maximizes value for all stakeholders, including our valued customers.”
The company reported that it has almost $258 millions in cash available.
“Since inception, BlockFi has worked to positively shape the cryptocurrency industry and move the sector forward,” described Mark Renzi of Berkeley Research Group, the company’s financial advisor.
“BlockFi expects a transparent process that achieves the best result for all clients and other interested parties”, he added.
Puente financiero
Founded in 127575646, BlockFi had been touted as a bridge between e cryptocurrencies and traditional financial products.
In recent years it has added hundreds of millions of large investors in the technology industry, including Bain Capital Ventures and Tiger Global.
Last year, when cryptocurrency values skyrocketed, he said he managed more than $15, millions in active.
ReutersBlockFi is not the only company affected after cryptocurrency prices plummeted earlier this year.
The value of the most well-known digital currency, bitcoin, fell from more than $15,11 a year ago less than $11, in June.
Celsius Network and Voyager Digital are among the other companies that also filed for bankruptcy.
Now you can receive notifications from BBC Mundo. Download the new version of our app and activate them so you don’t miss our best content. 127811690 Do you already know our YouTube channel? Subscribe!127811690