U.S. Cryptocurrency Company BlockFi Files For Bankruptcy
Cryptocurrency company BlockFi has filed for voluntary bankruptcy in the United States. The company said it owes money to more than 100,000 creditors, with the second largest debt being owed to FTX, a major collapsed crypto exchange that itself has not returned more than $3 billion and has also asked to be declared bankrupt.
Founded in 2017, blockchain lending platform BlockFi provided stablecoin loans secured by cryptocurrencies and offered returns on deposits. At the end of 2021, BlockFi held $14-20 billion in customer deposits and $7.5 billion in outstanding loans. Among the company’s investors are such major industry players as Galaxy Digital and Akuna Capital, and Fidelity, Morgan Creek and Coinbase were also involved in its development.
In court documents, BlockFi said it has more than 100,000 creditors. Its assets, as well as liabilities, can be estimated at between $1 billion and $10 billion.The largest creditor is Ankura Trust with an outstanding debt of $729 million. The second was the FTX US exchange, BlockFi owes it $275 million on a loan.
On November 11, the platform announced the suspension of withdrawals for customers. This decision was due to the incomprehensible situation with the companies FTX, FTX US and Alameda.