The BlockFi cryptocurrency lending platform has just filed for Chapter 11 bankruptcy protection in the United States. A new consequence of the collapse of FTX.
BlockFi, which promised very attractive interest rates to savers on its platform, is swept up in the turmoil caused by FTX. Sam Bankman-Fried’s company came to his aid last June after the LUNA crisis. A gift that has since turned out to be poisoned.
BlockFi owes more than $1 billion to its first two creditors
The document filed by the American company with the authorities, and in which its main creditors are listed, shows us that BlockFi thus owes 729 million dollars to Ankura Trust Company – the fund representing creditors in difficulty according to Reuters.
Behind, we find FTX. The cryptocurrency platform, whose name resonated across the planet during the month of November, appears number two with 275 million dollars in receivables to its credit. The crypto-asset exchange had signed an agreement with BlockFi this summer to set up a credit facility of 400 million euros, which was almost completely consumed according to information from the wall street journal.
We also note that the SEC (Securities and Exchange Commissionthe US financial regulator) is the fourth creditor on the list, worth $30 million.
In total, BlockFi has nearly 100,000 creditors
BlockFi, however, still hopes to get out of it. She says she currently has $256.9 million in cash, which “ should [lui] provide sufficient liquidity to carry out its restructuring. The American firm owes money to almost 100,000 creditors, with assets and liabilities ranging between 1 and 10 billion dollars.
And the consequences will soon be felt. A lawsuit has been filed against FTX founder Sam Bankman-Fried to recover the 7.6% stake he owns in the financial services company Robinhood, the latter having served as guarantees for promises of payment made in early November. Large cuts will also be made in the workforce, two thirds of the 292 employees to be made redundant.
Sources: The Verge, Reuters
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