{"id":517390,"date":"2022-11-28T19:22:11","date_gmt":"2022-11-28T16:22:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/blockfi-files-for-bankruptcy-as-ftx-contagion-spreads\/"},"modified":"2022-11-28T19:22:11","modified_gmt":"2022-11-28T16:22:11","slug":"blockfi-files-for-bankruptcy-as-ftx-contagion-spreads","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/blockfi-files-for-bankruptcy-as-ftx-contagion-spreads\/","title":{"rendered":"#BlockFi files for bankruptcy as FTX contagion spreads"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d82f1d60fb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d82f1d60fb\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/blockfi-files-for-bankruptcy-as-ftx-contagion-spreads\/#%E2%80%9CBlockFi_files_for_bankruptcy_as_FTX_contagion_spreads%E2%80%9D\" >&#8220;BlockFi files for bankruptcy as FTX contagion spreads&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CBlockFi_files_for_bankruptcy_as_FTX_contagion_spreads%E2%80%9D\"><\/span>&#8220;BlockFi files for bankruptcy as FTX contagion spreads&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Prominent cryptocurrency lending platform BlockFi filed for bankruptcy on Monday as the contagion effect from FTX\u2019s collapse spreads through the sector, company officials said.<\/p>\n<p>The company\u2019s bankruptcy filing stated it has more than 100,000 creditors, along with estimated assets and liabilities of between $1 billion and $10 billion. BlockFi confirmed bankruptcy proceedings were underway and warned that it \u201cexpects that recoveries from FTX will be delayed\u201d due to the platform\u2019s meltdown.<\/p>\n<p>\u201cWith the collapse of FTX, the BlockFi management team and board of directors im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely took action to protect clients and the company,\u201d said Mark Renzi of Berkeley Research Group, BlockFi\u2019s financial adviser.<\/p>\n<p>\u201cFrom inception, BlockFi has worked to positively shape the cryptocurrency industry and advance the sector. BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders,\u201d Renzi added.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"\/>BlockFi said it expects to receive court <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval on motions \u201cto pay employee wages and continue employee benefits without disruption\u201d as it aims to maintain operations during the proceedings. The company it would also seek to retain \u201cbusiness critical\u201d employees.<\/p>\n<p>Aside from filing for bankruptcy, BlockFI said it has \u201cinitiated an internal plan to considerably reduce expenses, including labor costs.\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/115744\/crypto-lender-blockfi-files-bankruptcy-ftx-contagion-claims-another\">Cryptocurrency news outlet Decrypt<\/a> had earlier reported BlockFi was laying off a significant portion of its staff.<\/p>\n<p>A BlockFi representative did not immediately return a request for comment on how many workers will be affected.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?w=1024\" alt=\"BlockFi said it would enact cost-cutting measures during the bankruptcy proceedings.\" class=\"wp-image-22705522\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>BlockFi said it would enact cost-cutting measures during the bankruptcy proceedings.<\/figcaption><figcaption><span class=\"credit\">SOPA Images\/LightRocket via Getty Images<\/span><\/figcaption><\/figure>\n<p>BlockFi enacted a \u201cpause\u201d in customer withdrawals earlier this month when FTX\u2019s troubles first surfaced. The company said the suspension remains in effect.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>\u201cBlockFi has US$256.9 million in cash on hand, which is expected to provide sufficient liquidity to support certain operations during the restructuring process,\u201d the company said in its release.<\/p>\n<p>The platform\u2019s filing marked the latest turn in a months-long saga that saw BlockFi\u2019s fortunes closely tied to those of FTX.<\/p>\n<p>In July, disgraced FTX founder Sam Bankman-Fried sought to bail out BlockFi in a deal that included a $400 million revolving credit facility and a $240 million option to buy the platform outright. The short-lived deal allowed BlockFi to stave off bankruptcy until FTX imploded.<\/p>\n<p>FTX\u2019s meltdown has sparked fears of a broader collapse in confidence across the cryptocurrency sector \u2013 with potentially disastrous consequences for the price of bitcoin and other digital currencies.<\/p>\n<p>Earlier Monday, Mobius Capital Partners co-founder Mark Mobius predicted bitcoin will plummet below $10,000 after hitting a high of more than $68,000 less than a year ago. The price of bitcoin was hovering near $16,150 as of Monday morning.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/mark-mobius-99.jpg?w=1024\" alt=\"Mark Mobius\" class=\"wp-image-24811026\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/mark-mobius-99.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/mark-mobius-99.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/mark-mobius-99.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Mark Mobius sees bitcoin plunging toward $10,000.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cIt\u2019s too dangerous,\u201d Mobius told <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=WdpnYqKAtmE\">Bloomberg Television<\/a> of his decision to stay away from the highly volatile digital assets. He added he refuses to invest his or his clients\u2019 money in any kind of cryptocurrency.<\/p>\n<p>Despite his reservations, Mobius said he believes crypto \u201cis here to stay \u2026 there are several investors who still have faith it.\u201d<\/p>\n<p>Still, Mobius doesn\u2019t believe that will keep the price of bitcoin from falling to pre-pandemic levels before the digital asset\u2019s multi-year bull run.<\/p>\n<p>All cryptocurrencies have been suffering in recent months: Bloomberg reports that the top 100 digital currencies have dropped more than 65% this year.<\/p>\n<p>Mobius, who clocked in three decades at global investment firm Franklin Templeton Investments, launched his own hedge fund in 2018 and now manages close to $140 million, according to recent filings.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/11\/28\/blockfi-files-for-bankruptcy-as-ftx-contagion-spreads\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;BlockFi files for bankruptcy as FTX contagion spreads&#8221; Prominent cryptocurrency lending platform BlockFi filed for bankruptcy on Monday as the contagion effect from FTX\u2019s collapse spreads through the sector, company officials said. The company\u2019s bankruptcy filing stated it has more than 100,000 creditors, along with estimated assets and liabilities of between $1 billion and $10&#8230;<\/p>\n","protected":false},"author":1,"featured_media":517391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[74862,135234,89897,136309,76127,71070,70360],"class_list":["post-517390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-ftx","tag-sam-bankman-fried","tag-11-28-22","tag-cryptocurrency","tag-hedge-funds","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/517390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=517390"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/517390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/517391"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=517390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=517390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=517390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}