BlockFi files for bankruptcy, latest crypto company to fail - BusinessMirror

  • 📰 BusinessMirror
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 59%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection Monday, the latest casualty of the collapse of crypto exchange FTX. Know more:

New Jersey-based BlockFi had been struggling for much of this year but was given a lifeline this summer in the form of an FTX line of credit. however, all but sealed BlockFi’s financial fate. BlockFi suspended withdrawals after FTX’s failure, and it had hired bankruptcy specialists in recent days.

BlockFi was one of several crypto currency lenders to pop up in recent years. The company gave loans to customers using their crypto assets as collateral. The severe drop in the value of bitcoin, ethereum and other cryptocurrencies made the collateral that BlockFi had secured often worth less than the loans it had outstanding.

In addition, this summer’s line of credit from FTX ended up being an albatross around the company’s neck. FTX’s financial rescue package was no longer available to BlockFi once it ran into its own financial trouble, and BlockFi said any attempts to get additional funds in the days before the bankruptcy were not honored.In its bankruptcy filing, BlockFi claimed more than 100,000 creditors, and liabilities ranging from $1 billion to $10 billion.

One creditor among BlockFi’s debts is the Securities and Exchange Commission. Back in February, BlockFi settled with the SEC over its crypto lending products, agreeing to pay $100 million in fines and penalties. Roughly $30 million of that is still owed to the U.S. government.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 19. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Directors must ensure company operations don’t harm the environment’ - BusinessMirrorDirectors of local firms should consider climate change-related risks in the discharge of their duties, to fulfill their companies’ long-term legal, economic, moral and social obligations towards their shareholders and other stakeholders, according to a white paper commissioned by the Commonwealth Climate and Law Initiative (CCLI). The opinion finds that under Philippine corporation law, the
Källa: BusinessMirror - 🏆 19. / 59 Läs mer »