BlockFi filed for financial protection on Monday in New Jersey, following a swirl of rumors that it got hit by the FTX contagion.
BlockFi’s chapter 11 had been expected for quite a while; however, in a definite 41-page recording, BlockFi advisor Mark Renzi strolls leasers, financial backers, and the court through his viewpoint in charge of BlockFi.
According to Renzi, exposure to the two successive hedge fund failures that happened this year and the FTX fiasco was a decisive factor in the collapse of BlockFI.
Renzi is quick to highlight that according to his perspective, BlockFi doesn’t “face the horde issues obviously confronting FTX.”
Renzi pointed to a $30 million settlement with the SEC and the company’s corporate governance and risk management protocols, writing that BlockFi is “well-positioned to move forward despite the fact that 2022 has been a uniquely terrible year for the cryptocurrency industry.
“The “issues” that Renzi alludes to may incorporate FTX’s widely discussed absence of monetary, risk, hostile to tax evasion, or review frameworks.
A new round fizzled for BlockFi. Customary outsider financial backers were frightened away by “horrible” economic situations, Renzi said in a document, compelling them to go to FTX just to follow through with client withdrawals.
