{"id":5507,"date":"2022-11-29T01:06:10","date_gmt":"2022-11-29T01:06:10","guid":{"rendered":"https:\/\/enews.sotout.com\/crypto-finance-firm-blockfi-files-for-bankruptcy-following-the-fall-of-ftx\/"},"modified":"2022-11-29T01:06:10","modified_gmt":"2022-11-29T01:06:10","slug":"crypto-finance-firm-blockfi-files-for-bankruptcy-following-the-fall-of-ftx","status":"publish","type":"post","link":"https:\/\/farratanews.online\/crypto-finance-firm-blockfi-files-for-bankruptcy-following-the-fall-of-ftx\/","title":{"rendered":"Crypto finance firm BlockFi files for bankruptcy following the fall of FTX"},"content":{"rendered":"<p> [ad_1]\n<\/p>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">The bankruptcy filing submitted in New Jersey lists Ankura Trust Company as its largest creditor, to the tune of $729 million, followed by FTX US at $275 million. The SEC is fourth on the list, owed $30 million as a result of penalties laid down earlier this year.<\/p>\n<\/div>\n<div>\n<figure class=\"my-9 lg:mx-0\">\n<div class=\"duet--media--content-warning relative\" style=\"padding-top:63.78662659654395%\"><span style=\"box-sizing:border-box;display:block;overflow:hidden;width:initial;height:initial;background:none;opacity:1;border:0;margin:0;padding:0;position:absolute;top:0;left:0;bottom:0;right:0\"><img alt=\"BlockFi Chapter 11 filing showing top four creditors owed.\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" decoding=\"async\" data-nimg=\"fill\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:cover\"\/><noscript><img alt=\"BlockFi Chapter 11 filing showing top four creditors owed.\" sizes=\"(max-width: 1023px) 100vw, 744px\" srcset=\"https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/376x240\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 376w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/384x245\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 384w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/415x265\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 415w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/480x306\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 480w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/540x344\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 540w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/640x408\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 640w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/750x478\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 750w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/828x528\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 828w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/1080x689\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 1080w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/1200x765\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 1200w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/1440x919\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 1440w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/1920x1225\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 1920w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/2048x1306\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 2048w, https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/2400x1531\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg 2400w\" src=\"https:\/\/duet-cdn.vox-cdn.com\/thumbor\/0x0:1331x849\/2400x1531\/filters:focal(666x425:667x426):format(webp)\/cdn.vox-cdn.com\/uploads\/chorus_asset\/file\/24233638\/blockfi_chapter11.jpg\" decoding=\"async\" data-nimg=\"fill\" style=\"position:absolute;top:0;left:0;bottom:0;right:0;box-sizing:border-box;padding:0;border:none;margin:auto;display:block;width:0;height:0;min-width:100%;max-width:100%;min-height:100%;max-height:100%;object-fit:cover\" loading=\"lazy\"\/><\/noscript><\/span><\/div>\n<p><figcaption class=\"duet--article--dangerously-set-cms-markup inline [&amp;&gt;a:hover]:text-black text-gray-13 dark:text-gray-e9 dark:[&amp;&gt;a:hover]:text-gray-e9 [&amp;&gt;a]:shadow-underline-gray-13 [&amp;&gt;a:hover]:shadow-underline-black dark:[&amp;&gt;a]:shadow-underline-gray-63 dark:[&amp;&gt;a:hover]:shadow-underline-gray-63\"><em>BlockFi Chapter 11 filing showing top four creditors owed.<\/em><\/figcaption><!-- --><cite class=\"duet--article--dangerously-set-cms-markup inline not-italic [&amp;&gt;a:hover]:text-gray-63 text-gray-63 dark:[&amp;&gt;a:hover]:text-gray-bd dark:text-gray-bd dark:[&amp;&gt;a]:text-gray-bd [&amp;&gt;a]:shadow-underline-gray-63 [&amp;&gt;a:hover]:shadow-underline-black dark:[&amp;&gt;a]:shadow-underline-gray dark:[&amp;&gt;a:hover]:shadow-underline-gray\">Image: BlockFi<\/cite><\/p>\n<\/figure>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">BlockFi says it currently has $256.9 million in cash on hand, which is \u201cexpected to provide sufficient liquidity\u201d to keep the company up and running while it restructures its business. The firm\u2019s going to focus on \u201crecovering all obligations\u201d owed to BlockFi by its counterparties, including FTX, although it expects this process to be delayed due to FTX\u2019s collapse.<\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">And this afternoon, the <a href=\"https:\/\/www.ft.com\/content\/1719e122-3b50-4d86-9a30-9fe72f2286fe\"><em>Financial Times<\/em><\/a> reports that pursuit includes suing FTX founder Sam Bankman-Fried over the 7.6 percent stake in Robinhood he owns, claiming it was pledged as collateral to guarantee payment obligations earlier this month.<\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">According to <a href=\"https:\/\/decrypt.co\/115744\/crypto-lender-blockfi-files-bankruptcy-ftx-contagion-claims-another\">a report from <em>Decrypt<\/em><\/a>, the company is also planning to lay off \u201ca large portion\u201d of its workers. The press release doesn\u2019t directly mention layoffs but notes that BlockFi is looking to reduce expenses, \u201cincluding labor costs.\u201d<\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">BlockFi\u2019s platform allowed users to trade and lend cryptocurrency in the hopes of obtaining \u201cyield,\u201d or interest. The company <a href=\"https:\/\/www.theverge.com\/2022\/6\/13\/23166028\/blockfi-crypto-com-layoffs-cryptocurrency-defi-slump-halts\">laid off around 20 percent of its workers<\/a> in June, blaming the downturn in the crypto market, and agreed to pay <a href=\"https:\/\/www.theverge.com\/2022\/2\/14\/22933245\/sec-blockfi-settlement-interest-account-yield-filing-register-crypto\">$100 million in penalties<\/a> to the SEC and other regulators based on its BlockFi Interest Accounts that were deemed to be unregistered securities and that BlockFi wasn\u2019t properly registered as an investment company.\u00a0 <\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">On November 14th, <a href=\"https:\/\/go.redirectingat.com?id=66960X1514734&amp;xs=1&amp;url=https%3A%2F%2Fblockfi.com%2Fnovember-14-2022-blockfi-update%3Futm_source%3DBlockFi%2BTwitter%26utm_medium%3Dorganic-social%26utm_campaign%3DCompany%2BNews%26utm_content%3D8186868117%26utm_term%3D20221114&amp;referrer=theverge.com&amp;sref\">BlockFi said it had<\/a> \u201csignificant exposure\u201d to the exchange and its \u201cassociated corporate entities,\u201d as FTX had given the company a $400 million credit facility and had the option to buy BlockFi. BlockFi had utilized most of that money, according to a report from <em>The Wall Street Journal<\/em>, after <a href=\"https:\/\/www.cnbc.com\/2022\/07\/01\/ftx-signs-a-deal-giving-it-the-option-to-buy-crypto-lender-blockfi-.html\">telling CNBC<\/a> that it hadn\u2019t touched it in July.<\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">Now, FTX has all but collapsed after a financial scandal, with founder Sam Bankman-Fried <a href=\"https:\/\/www.theverge.com\/2022\/11\/10\/23451484\/ftx-customer-funds-alameda-research-sam-bankman-fried\">reportedly using customer funds<\/a> to prop up his other business, Alameda Research. Within days, estimates of Bankman-Fried\u2019s personal assets went from $26 billion to zero.<\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\">An exchange as large as FTX folding was bound to have knock-on effects for the crypto industry as a whole and could end up triggering a push to regulate the space even further. BlockFi had promised that it had \u201cthe necessary liquidity to explore all options,\u201d and this is apparently the only option left.<\/p>\n<\/div>\n<div>\n<p class=\"duet--article--dangerously-set-cms-markup duet--article--standard-paragraph mb-20 font-fkroman text-18 -tracking-1 leading-160 dark:text-white selection:bg-franklin-20 dark:selection:bg-blurple [&amp;_a]:shadow-underline-black [&amp;_a:hover]:shadow-highlight-franklin dark:[&amp;_a:hover]:shadow-highlight-blurple dark:[&amp;_a]:shadow-underline-white\"><em><strong>Update November 28th, 6:40PM ET:<\/strong> Updated to note BlockFi\u2019s lawsuit against Sam Bankman-Fried.<\/em><\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] The bankruptcy filing submitted in New Jersey lists Ankura Trust Company as its largest creditor, to the tune of $729 million, followed by FTX US at $275 million. The SEC is fourth on the list, owed $30 million as a result of penalties laid down earlier this year. BlockFi Chapter 11 filing showing top &hellip;<\/p>\n","protected":false},"author":1,"featured_media":5509,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/5507"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=5507"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/5507\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/5509"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=5507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=5507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=5507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}