BlockFi went bankrupt, now what?
The bankruptcy of the famous cryptocurrency exchange FTX continues to affect various companies. US-based cryptocurrency lender BlockFi has filed for bankruptcy.
BlockFi's filing for bankruptcy came about three weeks after one of the world's largest exchanges, FTX, went bankrupt. The biggest reason for the company's bankruptcy is shown as having a total loan agreement of 275 million dollars with FTX and the inability of FTX to allocate these loans after its bankruptcy. In addition, the fact that the crypto money market has been in a decline for a long time, the company's inability to recover its crypto loans, and the severe tightening of the global financial environment are other important reasons for bankruptcy. The company, which has been experiencing financial difficulties for a while, suspended all transactions, including withdrawals, after FTX collapsed. The bankruptcy decision of the company, which survived the loan agreement with FTX in July, was expected in the sector.
The debts of the company, which announced its cash assets as $257 million, reach billions of dollars
Among its creditors is the SEC, will the SEC be able to collect its debt? With the bankruptcy of the company, a lot of information emerged. It was reported in the media that BlockFi owes about $ 30 million to the United States Securities and Exchange Commission (SEC). As it is known, the SEC is a government agency and this may lead to the idea that it will collect its debt in some way, but the information obtained so far is that the SEC will not be able to collect its receivables. Because the SEC has been able to collect only 55% of its $20 billion receivables through securities lawsuits in the last five years.
Many people and institutions were affected
After BlockFi filed for bankruptcy, the US-based crypto and digital asset bank Silvergate was affected by this bankruptcy decision, and the company's shares fell by 6% last night. In the statement made by Silvergate after this, it was stated that they did not have investments in the BlockFi company, but they had a deposit of $ 20 million within the company, so the size of the loss was $ 20 million. On the other hand, it turned out that Peter Thiel, one of the founders of Paypal, owns 19% of the BlockFi company and made a serious loss. It was among the information that BlockFi also gave loans to many mining companies and that there was a risk that they could not repay their loans.
