BlockFi says it will use the Chapter 11 process to 'focus on recovering all obligations owed by its counterparties, including FTX and associated corporate entities'
BlockFi said in a statement Monday that it will use the Chapter 11 process to “focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities,” adding that recoveries are likely to be delayed by FTX’s own bankruptcy. Chapter 11 bankruptcy allows a company to continue operating while working out a plan to repay creditors.
Following investigations into FTX by the US Securities Exchange Commission and Commodity Futures Trading Commission over potential misuse of customer funds, it became unclear to BlockFi where funding for a credit line from FTX US and collateral on loans to Alameda, which included Robinhood Markets Inc. stock, came from, Bloomberg News reported earlier this month.
The company grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina, according to its website. Co-founder Prince in a March 2021 interview with Bloomberg said BlockFi was using proceeds from a $350-million funding round to expand into new markets and fund new products. Bain Capital Ventures and Tiger Global were among the investors in the that round.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto lender BlockFi goes bankrupt in aftermath of FTX meltdown - BNN BloombergBlockFi filed for bankruptcy, the latest crypto firm to collapse in the wake of crypto exchange FTX’s rapid downfall.
Read more »
BlockFi files for bankruptcy, becoming the latest victim of the FTX contagionCrypto lender BlockFi and eight of its affiliates have voluntarily filed for Chapter 11 bankruptcy in the U.S. after its ties to FTX prove too much to overcome.
Read more »
U.S. cryptocurrency lender BlockFi, eight of its affiliates file for bankruptcy protectionBlockFi is the latest casualty since FTX collapsed earlier this month triggering instability in the crypto market
Read more »
FTX faces criminal and civil investigation in the BahamasMinister of Legal Affairs revealed that there was an ongoing criminal and civil investigation against FTX FTX was the only registered entity in the region while its subsidiary Alameda Research had no legal presence The Bahamas Attorney General and Minister of Legal Affairs – Ryan Pinder finally issued a national statement on the collapse of […]
Read more »
Bahamas Attorney General reveals active civil and criminal investigations against FTXBahamian Attorney General Ryan Pinder released a statement earlier today to address the situation with bankrupt crypto exchange FTX, which was headquartered in the island nation. In his address, which was live-streamed on Facebook, AG Pinder, who also serves as the Bahamas’ Minister of Legal Affairs, detailed the actions taken by the government since FTX’s […]
Read more »
FTX remains focus of 'active' investigation, Bahamas attorney general saysCollapsed cryptocurrency exchange FTX remains the subject of “an active and ongoing investigation” by Bahamian authorities, Bahamian Attorney General Ryan…
Read more »