{"id":1034,"date":"2022-11-28T19:27:08","date_gmt":"2022-11-28T19:27:08","guid":{"rendered":"https:\/\/yareport.com\/?p=1034"},"modified":"2022-11-28T19:27:08","modified_gmt":"2022-11-28T19:27:08","slug":"crypto-lender-blockfi-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/yareport.com\/index.php\/2022\/11\/28\/crypto-lender-blockfi-files-for-bankruptcy\/","title":{"rendered":"Crypto lender BlockFi files for bankruptcy"},"content":{"rendered":"\n<p>The crypto lender BlockFi has become the latest big operator to declare bankruptcy, as the fallout of the collapse of offshore exchange <strong>FTX<\/strong> continues to spread.<\/p>\n\n\n\n<p><strong>BlockFi<\/strong>, which operates in a similar fashion to a conventional bank, paying interest on savings and using customer deposits to fund lending, says it has $256.9 Million cash in hand. According to court documents, its creditors include <strong>FTX <\/strong>itself, to which it owes $275 Million, and the US Securities and Exchange Commission (SEC), to which it owes $30 Million.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cThis action follows the shocking events surrounding FTX and associated corporate entities and the difficult but necessary decision we made as a result to pause most activities on our platform.\u201d<\/p><p>\u201cSince the pause, our team has explored every strategic option and alternative available to us, and has remained laser-focused on our primary objective of doing the best we can for our clients.\u201d<\/p><p>\u201cThese Chapter 11 cases will enable BlockFi to stabilise the business and provide BlockFi with the opportunity to consummate a reorganisation plan that maximises value for all stakeholders, including our valued clients.\u201d<\/p><cite>In a statement announcing its Chapter 11 bankruptcy filing, BlockFi said<\/cite><\/blockquote>\n\n\n\n<p>The SEC levied a $100 Million fine on the company in February for <strong>violating securities laws<\/strong>, arguing that the investment products the company offered qualified as <strong>unregistered securities<\/strong>. The outstanding $30 Million debt is apparently the unpaid portion of that fine.<\/p>\n\n\n\n<p><strong>BlockFi<\/strong> has already stumbled close to bankruptcy once already this year, in the wake of the crypto crash.<\/p>\n","protected":false},"excerpt":{"rendered":"The crypto lender BlockFi has become the latest big operator to declare&hellip;\n","protected":false},"author":4,"featured_media":1035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_mi_skip_tracking":false},"categories":[19],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/posts\/1034"}],"collection":[{"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1034"}],"version-history":[{"count":1,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/posts\/1034\/revisions"}],"predecessor-version":[{"id":1036,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/posts\/1034\/revisions\/1036"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/media\/1035"}],"wp:attachment":[{"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yareport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}