BlockFi Eyes Bankruptcy as FTX Fallout Continues: Report
Sponsored
Sponsored
BlockFi is preparing to once again to lay off staffers as the crypto lender considers a possible bankruptcy filing, the Wall Street Journal reported Tuesday. The move, per the Journal’s report, is the latest contagion directly stemming from the sudden blow-up of crypto exchange FTX — which sent digital asset markets reeling and triggered a rush of big-money withdrawals from centralized exchanges into safer cold storage solutions. In an ironic twist, FTX in July had planned to acquire BlockFi outright for up to $240 million, depending on the startup’s performance triggers. That potential acquisition came with a precursor: a $400
Instead of waiting for a lengthy bankruptcy process, some investors, who have claims on FTX exchange, Celsius Network, BlockFi and Voyager Digital, are looking to pass on their claims to others. Data from crypto claims trading startup Xclaim shows that there are at least hundreds of investors who have been…
Non-bank credit institution BlockFi lost $1.2 billion due to the bankruptcy of FTX and Alameda Research. Money was invested in companies before the collapse and remained blocked after filing for bankruptcy. This information was accidentally released by M3 Partners, which is BlockFi’s bankruptcy advisor, CNBC reported. As of Jan. 14,…