American cryptocurrency platform BlockFi announced at the beginning of the bankruptcy proceedings. Both BlockFi Inc. and all eight of its subsidiaries have filed for Chapter 11 bankruptcy protection and corporate restructuring. In parallel, Bermuda-registered BlockFi International Ltd has filed a petition in the country’s supreme court to appoint temporary liquidators for the business under section 161(e) of the Bermuda Companies Act.
BlockFi provides its customers with dollar loans secured in cryptocurrencies, and also allows you to open deposits in cryptocurrencies at high interest rates. At the end of 2021, the company had more than 450,000 private clients, most of whom are small investors. Of these, around 100,000 are creditors. The volume of cryptocurrency user deposits is, second The Wall Street Journal$14 billion to $20 billion, under which BlockFi issued $7.5 billion in loans.
The bankruptcy of BlockFi is a consequence of the collapse of the cryptocurrency company FTX Group, which was one of the largest players in the market. BlockFi froze account transactions almost immediately after filing for bankruptcy on Nov. 11 announced FTX Group, from which BlockFi borrowed $400 million in June of this year. According to court documents, BlockFi still owes FTX $275 million. The largest debt owed by the cryptocurrency lender is to trust company Ankura ($729 million).
FTX’s problems dragged dozens of other companies along with it. Then, serious liquidity problems arose at cryptocurrency brokerage Genesis, which is now desperate for $1 billion. According to Morgan Stanley, a total of 63 companies could experience the collapse of FTX.
Read more about the history of the collapse of FTX – in the publication “Kommersant” “Geek Corporation”.
