Crypto lender BlockFi says it has significant exposure to FTX, Are we going to have the LUNA bankruptcy saga again?
Crypto lender BlockFi says it has significant exposure to FTX, Are we going to have the LUNA bankruptcy saga again?
Sam Bankman-Fried, his company FTX and the company's native token FTT is the worst thing that has happened to the crypto space and crypto market in the past few days or week because trust me, based on what happened when Terra LUNA and UST crashed and cause the same level of chaos in the crypto market as FTX and FTT collapse has caused I would be expecting a lot of crypto lending firms and exchanges to be either file for bankruptcy or suspend withdrawals in preparation to file for bankruptcy due to the exposure for investing in FTT like how 3AC, Celsius, Voyager filed for Chapter 11 bankruptcy due to the exposure to the Terra LUNA and UST crash sometime this year.
My expectations were right or should I say spot on because based on the recent news report from the Wall Street Journal, BlockFi is preparing for potential Chapter 11 bankruptcy after the collapse of FTX and FTT a few days ago, just in case you did not know that FTX purchased BlockFi in July of this year when the cryptocurrency lender was experiencing severe financial difficulties. The platform was exposed to the failure of Three Arrows Capital to the tune of $80 million. Despite the failure of FTX, the company initially declared itself to be “fully functional”.
But trust me all that has changed now due to the crash of Sam Bankman-Fried's company FTX and the company's native token FTT, which was a result of Sam Bankman-Fried over-leveraging a lot more than his company can handle, his greed and thirst for power, and taking too much risk using company funds. I feel for crypto lending firm BlockFi and its investors, and also for all the companies that invested in Sam Bankman-Fried exchange FTX and the crypto firms that FTX bought, all of them have automatically filed for bankruptcy as the FTX empire has fallen and filed for bankruptcy themselves.
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