FTX’s sudden bankruptcy and Sam Bankman-Fried’s stepping down as CEO rocked the cryptocurrency market, but it’s not the only event to do so. Just in the last few hours BlockFi has filed for bankruptcy after suspending withdrawals on November 10: this move will help “stabilize the business”.
According to what was taken up by Decrypt, the bankruptcy filing comes precisely in the light of what happened to FTX: the New Jersey company has defined this move as natural in the light of the “lack of clarity” on the bankruptcy status of FTX and Alameda Researchalso by virtue of the capital injection last July by the Bankman-Fried company, necessary to save BlockFi itself.
The latter claims it currently has $256.9 million in cash, e over 100,000 creditors with assets and liabilities between $1 and $10 billion. The focus now is to keep the company up and running as it restructures internally, recovering obligations owed to BlockFi from counterparties and potentially laying off “a large proportion of employees” to reduce expenses.
The procedures have officially started under the Chapter 11 process; in other words, BlockFi will continue to operate as it works out a plan to repay creditors.
Meanwhile, there are those who want to turn the collapse of FTX into an Amazon series.
