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Another new platform declaring bankruptcy after significant exposure to FTX and Alameda

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BlockFi, one of the largest holistic cryptocurrency platforms, filed for bankruptcy today. This is after a series of allegations that BlockFi was exposed to the collapse of FTX, and therefore, they have no funds. However, BlockFi continues to deny these allegations. Although not directly, BlockFi declined to be exposed to the FTX collapse to this extent. According to Bitcoin Magazine, BlockFi is filing for Chapter 11 bankruptcy. This information was disclosed by someone inside the company.

The cryptocurrency world has been left reeling after the collapse of Sam Bankman-Fried’s crypto empire. After the collapse of FTX and the +130 companies owned by SBF, their partners began to collapse as a ripple effect. Every day after November 11, you can read news about the collapse of a new society. There have been allegations that BlockFi has been planning to file for bankruptcy since the day FTX went down. However, BlockFi says that they have the necessary funds to maintain the trustworthiness of its platform at a good level. Now, however, they have filed for Chapter 11 bankruptcy in New Jersey.

BlockFi’s exposure to FTX

Just five days ago, BlockFi answered some frequently asked questions online. While BlockFi offers a wide range of financial services, users have asked what happens to their funds on the BlockFi platform. FYI, BlockFi shut down all operations in the second week of November after FTX crashed. In this post, BlockFi admitted that the company has significant exposure to FTX and Alameda. However, BlockFi claims that the platform does not hold 100% of FTX customer deposits, as speculators claim.

Also read Here are Vitalik Buterin’s 3 key points of view for Ethereum presented at the EthCC cryptocurrency event!

The collapse of FTX ushered in a new wave of transparency in the cryptocurrency industry. Today, some of the largest cryptocurrency companies have evidence of public reserves. Binance, for example, has been careful to inform its users that it is completely trustworthy and has a reserve fund for emergencies with more than $2 billion worth of Bitcoin, BUSD, BNB and Ethereum.

This article is offered to you in French in agreement with our partner crypto-academy.org
If you speak English, find the original English article on Crypto Academy

Source: The Blog

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