The domino effect of bankruptcies in the cryptocurrency space. A platform for crypto-asset lending and financial services BlockFi Has registered a voluntary application to benefit from the protection stipulated in Chapter 11 of the Bankruptcy Law while restructuring his activity, and thus became The latest casualty of the sector after the collapse of FTX.
The company said in a statement that the parent company and its eight subsidiaries have accepted the suspension of the payments process before the New Jersey District Bankruptcy Court. With this movement they are seeking a comprehensive restructuring to get the business back.
In this restructuring, the platform will focus on recovering all obligations owed by BlockFi counterparties, including FTX itself and other associated entities, although it assumes that due to its recent collapse, refunds will be delayed.
“With the collapse of FTX, BlockFi’s management team and board of directors immediately took action to protect both customers and the company,” he explained. Mark Renzi of the Berkeley Research GroupFinancial Advisor to BlockFi, expressing his confidence that the transparent process brings the best results for all customers and stakeholders.
Likewise, the company confirmed the continued cessation of platform activity, considering that it has cash available in the amount of $ 256.9 million (247 million euros), which is expected to provide sufficient liquidity to support certain operations during the process. Restructuring.
BlockFi’s collapse comes just two weeks after cryptocurrency trading platform FTX declared bankruptcy. FTX’s solvency was called into question after rival Binance decided to backtrack on its intention to bail out the platform, after conducting ‘due diligence’ and before investigations were opened by US government agencies.