Posted on 11/28/2022 9:27:09 AM PST by EBH
Crypto firm BlockFi filed for Chapter 11 bankruptcy protection in the wake of FTX's bankruptcy.
It's the latest in a series of crypto bankruptcies, following FTX, Voyager and Celsius.
Distressed crypto firm BlockFi has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey following the implosion of putative acquirer FTX.
In the filing, the company indicated that it had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.
In the filing, the company listed an outstanding $275 million loan to FTX US, the American arm of Sam Bankman-Fried's now-bankrupt empire.
Like FTX, BlockFi also has a Bahamian subsidiary. That subsidiary moved for bankruptcy in the Bahamas concurrently with the American filing.
BlockFi's bankruptcy filing shows that the company's largest disclosed client has a balance of nearly $28 million.
"BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders," Berkeley Research Group's Mark Renzi said in a press statement. BRG serves as BlockFi's financial advisor.
The crypto company, which offers a trading exchange and interest-bearing custodial service for cryptocurrencies, was one of many firms to face serious liquidity issues after the implosion of Three Arrows Capital
(Excerpt) Read more at msn.com ...
Invest in crypto they said.....you’ll clean up they said......completely secure they said...
If you don’t hold it, you don’t own it.
“with liabilities and assets ranging from $1 billion to $10 billion”
That’s some pretty precise accounting there.
BlockFi is the only independent lender with institutional backing from investors that include Valar Ventures, Galaxy Digital, Akuna Capital, SoFi, and Coinbase Ventures.
I’ll take “Stupid Business Decisions” for 500, Alex.
“In the filing, the company listed an outstanding $275 million loan to FTX US, the American arm of Sam Bankman-Fried’s now-bankrupt empire.”
Um ... What is a “stupid business decision”?
You are correct and enter the scoreboard with 500 dollars.
đź‘Ť
madoff enters the chat
Just like our 401Ks, IRAs, and checking accounts.
"Money" has been virtual ever since the Financial Services Syndicate and Social Club™ invented "fractional reserve banking".
So in that respect, crypto-currency is no different than the vast majority of our legal tender.
I have a very hard time believing that those investors along with Sequoia Capital can be swindled that easily.
Methinks it's much more likely to be a well coordinated criminal money laundering enterprise run by our own Government.
—> If you don’t hold it, you don’t own it.
Just like your bank and brokerage accts
There is an important distinction between holding the keys to your cryptocurrency, and entrusting a third party institution to hold the keys to your cryptocurrency. Note these stories you see are always regarding exchanges, not the protocol wallets themselves.
Bitcoin is completely secure. The government cannot freeze my balance in bitcoin. The government cannot stop me from transferring any portion of my balance in bitcoin. Most importantly, the government cannot confer to its own balance any of my bitcoin, nor can it conjure it at the printing press.
Don't fall for the trick of confusing exchanges (usually caught gambling with their clients funds) with cryptocurrency in general, or bitcoin in particular.
BUY BEAR STEARNS!!!
If all these crooked companies don’t bail each other out the whole thing collapses. It is ponzi scheme on top of ponzi scheme.
Giggle sound heard from Madoff’s box.
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