According to a newspaper report, the collapse of the FTX crypto exchange dragged the crypto bank BlockFi into the abyss. It is currently preparing a bankruptcy filing, the Wall Street Journal wrote on Tuesday.
At the beginning of the week, the company had admitted that the bankruptcy at FTX had “fired significant amounts”. In addition, the lender stopped all withdrawals. In July, FTX had signed an option to buy BlockFi.
More than a million FTX creditors?
According to insiders, at least a billion dollars in customer funds have disappeared from FTX. The company’s previous head, Sam Bankman-Fried, dismissed the allegation of secret dealings. According to the bankruptcy filing, more than one million creditors could file claims.
The affair has rocked the entire cryptocurrency industry. Bitcoin and Ethereum sometimes lost about 20 percent. At the same time, rumors of irregularities and possible problems with other trading platforms were circulating. Among others, FTX rival Crypto.com was targeted. His boss emphasized that his company has a strong balance sheet.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
