BlockFi Files For Bankruptcy Protection Following Collapse of FTX
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BlockFi Filed Bankruptcy Protection
The petition lists a number of significant creditors including Ankura Trust Company, LLC, which has an unsecured claim of about $729 million, the largest among others. The Securities and Exchange Commission and FTX US are the following mentioned creditors, and they have bankruptcy interests of $30 million and $275 million, respectively.
The FTX US sum seems connected to a credit line given to BlockFi earlier this year. Meanwhile, the SEC's settlement amount is related to a multi-party investigative deal reached with state and federal officials in February. According to a press release published when BlockFi filed for Chapter 11 protection, BlockFi has US$256.9 million in cash, intended to provide enough liquidity to maintain certain activities during the reorganization process.
Fair and Open Process For Results
According to Mark Renzi of Berkeley Research Group, the corporation's economic adviser, with the failure of FTX, the BlockFi management group and board members swiftly took measures to safeguard consumers and the Company. Since its beginning, BlockFi has endeavored to promote and improve the cryptocurrency industry. BlockFi anticipates a fair and open procedure that leads to significant results for all parties involved, including clients and other interested parties.