The giant in cryptocurrencies went bankrupt after the collapse. 💣⚠️
What led BlockFi to bankruptcy?
The main keyword of this topic, BlockFi, is directly related to the liquidity crisis faced by the company. After the downfall of FTX, one of the largest exchanges in the world, BlockFi lost access to essential resources to maintain its operations. Dependence on credit lines and exposure to problematic partners worsened the situation, culminating in the decision to file for bankruptcy protection in the United States.
Additionally, BlockFi had accumulated significant debts, including obligations to FTX itself and to regulatory bodies such as the U.S. Securities and Exchange Commission (SEC). The high liabilities, combined with customer distrust and market instability, made it unfeasible to continue operations without judicial intervention.
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