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.
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.
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Source: The Blog
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I am Ben Stock, a highly experienced news writer with several years of experience in the industry. I currently work for The News Dept as an author, where I specialize in market-related stories. My passion and expertise lies in providing readers with accurate and up-to-date information on the latest financial developments from around the world. I have been recognized for my clear writing style and ability to explain complex topics in simple terms that even those new to financial markets can understand.
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