BlockFi Liabilities are in $1B to $10B Range, Bankruptcy Filing Unveils

Vignesh Karunanidhi
BlockFi Liabilities are in $1B to 10B Range, Bankruptcy Filing Unveils
Source: Forbes

Over the last few weeks, a chain of unfortunate events occurred in the area surrounding cryptocurrencies. Individuals in the cryptocurrency realm were in a state of fright following the fall of the FTX empire. Many employees and outside investors claimed they had lost their entire lives savings.

BlockFi, a cryptocurrency lending platform, was also impacted by FTX’s downturn. BlockFi halted the withdrawals on their platform in the midst of the ruckus. It was also reported that BlockFi was preparing for a potential bankruptcy. Well, the nightmares have proven to be true, as the cryptocurrency lender officially files for bankruptcy.

As per the recent report, BlockFi and eight of its affiliates filed for Chapter 11 bankruptcy. The bankruptcy filing also reveals the liabilities of the cryptocurrency lender to be in the billions.

BlockFi liabilities range from $1 billion to $10 billion

As per the details from the bankruptcy filing, the troubled cryptocurrency lender has more than 100,000 creditors. The details also depict that the liabilities and assets range from $1 billion to $10 billion.

The filing also reveals that BlockFi has an outstanding $275 million loan to FTX US. The specifics show that it had a sizable exposure to FTX. It should be observed that when FTX bought BlockFi in July of this year, the company was experiencing serious financial difficulties. The failure of Three Arrows Capital cost the platform $80 million.

However, given that the lender has reportedly been adversely affected by the collapse of FTX, it appears that things have changed. It joins the crowd of business failings.