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BlockFi To Reveal Financial State Post FTX Collapse and Bankruptcy Filing

2 mins
Updated by Kyle Baird
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In Brief

  • BlockFi announced it would file financial information on Jan. 11.
  • The info will cover assets, liabilities, and payments made before the bankruptcy filing.
  • The exchange has been working on financial restructuring since the filing.
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Bankrupt cryptocurrency company BlockFi announced that it would publish financial information on Wednesday. The info will cover assets, liabilities, and payments made before the bankruptcy filing.

Cryptocurrency lending platform BlockFi announced on Jan. 9 that it would publish information on its financial situation on Jan. 11. The company tweeted that it would file both Schedules of Assets and Liabilities and its Statement of Financial Affairs. This will offer information on all the assets and liabilities and payments made to insiders and other parties before the bankruptcy. 

It also provided a document that informs stakeholders “with important historical background and context.” It talks about the progress BlockFi has made since the first day of its hearing, noting that it had reached out to 106 domestic and international potential buyers.

BlockFi also referred to FTX collapse and its impact on the company and its stakeholders. It laid off 20% of its employees, and the fact that FTX loaned $400 million to aid BlockFi helped stabilize it.

The FTX collapse was the final nail in the coffin for BlockFi, and it has since been working on its restructuring. There have been some small updates on the matter since and stakeholders are keeping a close eye on the proceedings.

BlockFi to Increase Deposit Rates, Removes Free Monthly Withdrawal - beincrypto.com

BlockFi Moving On Since Bankruptcy Filing

BlockFi filed for bankruptcy in November after FTX collapsed, stating that it would focus on repaying its debt and attempting to recover money. It joined an infamous list of companies that shut down in 2022 and owes over 100,000 creditors.

The recent tweet is an important follow-up to its restructuring announcement in November last year. In that, BlockFi revealed that it had $256.9 million in cash on hand. That allowed it to continue with certain operations during the process.

Close Ties to FTX

The connection to FTX is one of the more significant aspects of BlockFi’s story. The company had a great deal of exposure to the fallen exchange and its related companies. The collapse of FTX led to BlockFi having to pause withdrawals for clients.

The FTX incident precipitated a sharp and shocking collapse, as BlockFi was named the fastest-growing U.S. firm in August 2022. Other companies also chimed in on the bankruptcy, with Ripple blaming the United States Securities and Exchange Commission for it.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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