The New Jersey-based crypto firm files for bankruptcy in the wake of FTX's bankruptcy.
The crypto company, which offers a trading exchange and interest-bearing custodial service for cryptocurrencies,The Jersey City, New Jersey-based company had already halted withdrawals of customer deposits and admitted that it had"significant exposure" to the now-bankrupt crypto exchange FTX and its sister trading house, Alameda Research.
"We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,"The company started talking with restructuring professionals in the days after FTX's bankruptcy filing, according to people familiar with the matter.BlockFi — which was last valued at $4.
Approximately 130 additional affiliated companies are part of the proceedings, including Alameda Research, Bankman-Fried's crypto trading firm, and FTX.us, the company's U.S. subsidiary. FTX's new CEO John Ray with the Delaware Bankruptcy Court that"in his 40 years of legal and restructuring experience," he had never seen"such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here."
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