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TECH Crypto firm BlockFi files for bankruptcy as FTX fallout spreads


kram1

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Good morning! Crypto news today are shocking!
 

Distressed crypto firm BlockFi has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey following the implosion of putative acquirer FTX.

In the filing, the company indicated that it had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.

 

In the filing, the company listed an outstanding $275 million loan to FTX US, the American arm of Sam Bankman-Fried’s now-bankrupt empire.

A BlockFi subsidiary also moved for bankruptcy in Bermuda concurrently with the American filing.

Bermuda, like the Bahamas, has embraced crypto as the future of finance. Both established frameworks to deal specifically with crypto assets and digital currencies. Both the Bahamas, with FTX’s bankruptcy, and now Bermuda, with BlockFi’s, face the first significant legal tests of their crypto regulations.

BlockFi’s bankruptcy filing shows that the company’s largest disclosed client has a balance of nearly $28 million.

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