Another one bites the dust: BlockFi officially files for bankruptcy due to $10 billion in liabilities, as the FTX saga spreads

BlockFi filing for bankruptcy is not really shocking to me, to be honest, because about 12 to 13 days ago, I made a post where they announced that they were financially exposed and might file for bankruptcy soon because they were first exposed early in May when LUNA and UST crashed but they did not file for bankruptcy then, so I thought they survived the Terra LUNA well without collapsing like Three Arrows Capital (3AC), Voyager and Celsius. The funny thing you might not believe is they were exposed to the Terra LUNA crash through Three Arrows Capital (3AC), which is where their problems started.

Call to Action (5).png

And in July this year, when the crypto lender was experiencing severe financial difficulties they were bought by FTX and they thought they were safe or saved at the time, when the crypto lender or lending firm was bought by FTX they were exposed to the failure of Three Arrows Capital (3AC) to the tune of $80 million in liabilities but now during their bankruptcy filing we saw their previous liabilities increase significantly in the amount and honest I didn't see how much it spiked to coming but the collapse of FTX really hit them hard or were they already in deep shit before FTX collapsed.

Because according to news reports, their $80 million in financial liabilities has now turned up to $10 billion, I can not explain how that happened but I guess I was shocked as you are right now when I read it from the crypto news blog I saw it, their bankruptcy Chapter 11 filing indicates that the firm BlockFi could have up to $10 billion in liabilities, as contagion from FTX spreads and continues when FTX collapsed and filed for bankruptcy, BlockFi stopped withdrawals stating that they have significant exposure to FTX collapse like I have said earlier. They also said they will be doing layoffs and will potentially file for Bankruptcy which they did yesterday.

As soon as they stopped withdrawals I expected them to file for bankruptcy next because stopping withdrawals is a common step crypto exchanges and lenders follow before they file for bankruptcy,

Discord: onwugbenuvictor#3447
Twitter: @VictorOnwugbenu

Posted Using LeoFinance Beta


Congratulations @onwugbenuvictor! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

You distributed more than 14000 upvotes.
Your next target is to reach 15000 upvotes.
You have been a buzzy bee and published a post every day of the week.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Check out the last post from @hivebuzz:

HiveBuzz World Cup Contest - Recap of Day 9
Hive Power Up Day - December 1st 2022
HiveBuzz World Cup Contest - Check your ranking
Support the HiveBuzz project. Vote for our proposal!