BlockFi is preparing to file for bankruptcy!

BlockFi is preparing to file for bankruptcy!

BlockFi announced in an official announcement for its customers on November 14 that it was largely negatively impacted by the collapse that occurred in FTX. The company stated that it has sufficient liquidity to review all other options. BlockFi founder and chief operating officer Flori Marquez reassured users in a thread he shared on Twitter on Nov. 8 that all BlockFi products are fully operational as they have a $400 million line of credit from FTX. However, the liquidity problems that occurred in FTX subsequently upset all of BlockFi’s plans.

You may be interested in: FTX-owned exchange Liquid has stopped shooting

It would not be surprising to learn that many more companies were adversely affected by the FTX crisis in the coming weeks. On November 15, crypto lending firm SALT sent customers an email announcing that it would abruptly stop withdrawals and deposits due to the effects of the FTX collapse.

“We have stopped deposits and withdrawals on the Salt platform until we determine the extent of this impact on the platform,” the email read.

SALT CEO Shawn Owen has denied claims that the company will go bankrupt after withdrawals and deposits are stopped. However, Owen said, “We did not send the email we sent to our customers as a signal of bankruptcy. In order to deal with the collapse in FTX and proceed with the utmost care in all our efforts to avoid bankruptcy, we pause to confirm that neither of our counterparties has additional risks. More information will be provided soon.”

On November 15, Cointelegraph reported that Japanese cryptocurrency exchange Liquid has halted withdrawals amid the liquidity crisis facing centralized exchanges. FTX-owned crypto exchange Liquid announced on Twitter that it is suspending fiat and crypto withdrawals on the Liquid Global platform.

BlockFi denied that most of its assets were held in FTX before the FTX stock market crashed. On the other hand, as reported by the WSJ, BlockFi is allegedly preparing to file for bankruptcy just one day from now.

Cointelegrap has reached out to BlockFi and SALT for a request for comment, but the translation has not received a response as of time of publication.

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