Another Cryptocurrency firm, BlockFi declares bankruptcy after the FTX fallout
The filing was lodged in the U.S. Bankruptcy Court for the District of New Jersey, according to a statement from BlockFi, which also noted that platform activity has been suspended.
The corporation issued a statement to its consumers on its website, saying, “We apologize that communication with our clients has not been as frequent as you have come to expect from us.
“Through our reorganization, we look forward to transparency, and we will try to keep clients and stakeholders updated as we make progress,” the statement reads.
BlockFi stated in court records obtained by UPI that the business has more than 100,000 creditors with liabilities ranging from $1 billion to $10 billion.
FTX’s $275 million loan to the company, as well as a $30 million settlement with the U.S. Securities and Exchange Commission, are among its obligations, according to court filings.”
BlockFi currently has $256.9 million in cash, which should be enough to fund some activities during the reorganization process “According to the company’s statement.
According to court filings, BlockFi has paid $750,000 to the law firms Haynes and Boone, Kirkland & Ellis LLP, and Cole Schotz P.C. for their representation.
Financial advisor Mark Renzi of Berkeley Research Group, the company’s management team, and the board of directors “quickly took measures to protect clients and the Company with the collapse of FTX,” according to a statement.
“BlockFi has fought to promote the cryptocurrency industry and positively shape it since its start. BlockFi anticipates a transparent procedure that yields the greatest results for all clients and other stakeholders.”
The business also mentioned that BlockFi International, a subsidiary registered in Bermuda, had petitioned the Supreme Court of that nation to appoint joint interim liquidators concurrently with the Chapter 11 lawsuits in the US.
The greatest instance of corporate failure he has ever witnessed, according to John J. Ray III, the new CEO of FTX, was described in court records earlier this month. Sam Bankman-Fried, a former cryptocurrency billionaire, founded the business, which declared bankruptcy on November 11.
Sam Bankman-Fried was attempting to acquire rival Binance before the filing, but Binance withdrew after learning of “mishandled customer funds and purported US agency investigations.”
Ray, the former CEO of Enron who handled the company’s liquidation, said, “I have directed the team at the FTX Debtors to emphasize the preservation of franchise value as best we can in these challenging circumstances.
“I humbly request the patience of all of our workers, vendors, customers, regulators, and government stakeholders as we put in place the arrangements that corporate governance deficiencies at FTX prevented us from putting in place prior to filing our chapter 11 cases.”