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In a new blow to the cryptocurrency market, BlockFi announced that it has filed for bankruptcy, becoming the latest digital asset company to collapse.
Cryptocurrency lender BlockFi said in a statement Monday that it has filed for Chapter 11 bankruptcy, allowing it to continue operating while developing payment plans for creditors.
The company indicated that it may delay recovery operations due to the bankruptcy of the "FTX" platform. According to the bankruptcy filing, BlockFi has assets of $1 billion and liabilities of $10 billion.
The company still has about $257 million in cash and said it would initiate an "internal plan to significantly reduce expenses, including labor costs".
Digital assets have been subjected to a major blow during the recent period, amid a liquidity crisis that exposed many companies operating in the sector to the risk of bankruptcy, which raised investor concerns and weakened their confidence in these assets.
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