On November 28, the officials at BlockFi made an announcement that many had expected them to make a week back. BlockFi announced that it had filed for bankruptcy citing a financial crisis.
BlockFi Went Bankrupt
The executives at BlockFi have confirmed that they have filed for bankruptcy. They have decided to go for Chapter 11 bankruptcy. The bankruptcy has been filed at the US Bankruptcy Court.
As communicated, bankruptcy has been filed for the company and all the subsidiaries that are currently owned by the brand name.
BlockFi announced bankruptcy more than two weeks after the bankruptcy announcement made by the FTX officials. The BlockFi executives have blamed FTX which has forced them to make the decision.
Right after the FX exchange’s collapse, the financial health of BlockFi started to deteriorate. The situation worsened to a point that it become impossible for them to recover.
Statement Released by BlockFi
In the public statement released by BlockFi, they have a total of $256.9 million that they have on hand. As the firm has filed for bankruptcy, it has also submitted a motion to the court.
In the motion, it has requested that the employee benefits and wages must be paid without any disruptions.
In addition to the above, the company has also added that it is seeking a Key Employee Retention Plan.
With the help of the plan, the company wants to retain its already trained resources when things come back to normal. They need to operate the functions considered business critical.
For this purpose, the firm is going to need employees who are already trained in particular segments and departments.
The officials have also communicated that they have readied an internal plan that is going to help their company reduce extra expenses. They will be implementing the plan so they can cut extra and unnecessary costs.
BlockFi International Bankruptcy
BlockFi International has also announced that it has filed for bankruptcy. According to the update from the particular platform, they have filed for bankruptcy at the Bermuda Supreme Court.
Although BlockFi initially denied having its business and operations impacted by the FTX collapse but it accept it later. Just a few days after the FTX exchange filed bankruptcy, BlockFi halted withdrawals.
It was at that time people knew that the situation had taken the worst turn for BlockFi.
The officials at BlockFi have admitted in the bankruptcy documents that a significant amount of their assets are stuck with FTX.
Impact on FTX Token
With another sad news being added to the FTX crash, the value of the FTX Token (FTT) has taken another hit in the past 24 hours. The value of the token has plunged 0.31% in the past 24 hours.
FTT’s value has recorded a 94.93% plunge in the past thirty days.