The bankruptcy of FTX, one of the largest cryptocurrency exchanges in the world, is the only topic that the crypto world has talked about lately. The scandal in the stock market under the management of Sam Bankman-Fried deeply affected the entire market and upset the investors. In addition, the bankruptcy created a domino effect in the sector, causing many stock markets to come to the brink of collapse.
One of them was the cryptocurrency company BlockFi, which was founded in 2017. The crypto platform, which has a multimillion-dollar agreement with FTX, suspended all transactions, including withdrawals, after the collapse of FTX. The company stated in a statement made at the time that it had sufficient liquidity. However, today there has been a new development in this regard.
BlockFi files for bankruptcy
The company, which is known for providing crypto loan services as well as trading, announced today that it has filed for bankruptcy with the United States District Court for the District of New Jersey. BlockFi’s bankruptcy came two weeks after FTX’s collapse.
In the statement, it was added that the company has $ 256.9 million in hand, which will be sufficient for certain operations in the restructuring process. The company, which wants to ensure that employee salaries and benefits continue without interruption, said that it has also started to implement a plan within itself to reduce costs.
“BlockFi looks forward to a transparent process that will achieve the best results for all customers and stakeholders,” Mark Renzi of Berkeley Research Group, which advises the company, said in a press release.
The domino effect after FTX’s bankruptcy worried crypto investors. For this reason, stock markets began to take steps towards transparency. For example, the world’s largest crypto exchange Binance released the ‘Proof of Reserve’ system the other day to gain the trust of investors.
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