BlockFi Files For Bankruptcy

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Yet another crypto company is headed for bankruptcy as the turmoil sparked by the bankruptcy of the FTX exchange continues.

Specifically, crypto bank BlockFi has filed for bankruptcy and protection from its creditors under Article 11 of US federal law, stating that it owes money to at least 100,000(!) creditors.

Prominent among these creditors is the already bankrupt FTX, which was its second largest creditor, having obtained a new extension of a $275 million loan earlier this year.

BlockFi’s significant exposure to FTX was already known and the company was named early on among the potential collateral damage of the collapse of the second largest cryptocurrency exchange.

However, BlockFi’s main creditor was Ankura Trust, with a debt of $729 million.

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The value of the financial services and cryptocurrency pledged lending company is estimated at $4.8 billion.

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