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BlockFi

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BlockFi
IndustryCryptocurrency
Founded2017; 7 years ago (2017)
Founders
  • Flori Marquez
  • Zac Prince
FateFiled for Chapter 11 bankruptcy protection in November 2022
HeadquartersJersey City, New Jersey, U.S.
Websiteblockfi.com

BlockFi was a digital asset lender founded by Zac Prince and Flori Marquez in 2017.[1] It was based in Jersey City, New Jersey.[2][3] It was once valued at $3 billion.[4]

In July 2022, it was announced that the cryptocurrency exchange FTX made a deal with an option to buy BlockFi for up to $240 million. The deal included a $400 million credit facility for the company.[5][6]

In November 2022, after the declaration of bankruptcy by FTX, the company halted withdrawals on its platform.[7] The firm disclosed "significant exposure" to FTX on November 14. The next day, the Wall Street Journal reported that BlockFi would likely file for bankruptcy, which was reaffirmed by reports compiled by Bloomberg News.[8][9][10] On November 28, BlockFi confirmed the reports and officially filed for Chapter 11 bankruptcy protection[11] with more than 100,000 creditors, according to filings.[12][13] In March 2023, following the collapse of Silicon Valley Bank, the U.S. Trustee watchdog overseeing BlockFi's bankruptcy revealed that BlockFi had around $227 million in uninsured funds at the bank.[14] BlockFi's CEO Zac Prince testified in the trial of Sam Bankman-Fried, and stated that he thought BlockFi would not have gone bankrupt if it had not lost access to its funds in the FTX collapse.[15] In October 2023, BlockFi emerged from Chapter 11 bankruptcy and announced that it would begin winding down all of its remaining operations and assets post-bankruptcy. Over the next few months, crypto assets will be returned to customers at BlockFi until all assets are fully liquidated. BlockFi will continue to pursue payments from the bankruptcies of FTX and Three Arrows Capital during the liquidation process.[16]

References

[edit]
  1. ^ Leising, Matthew (March 4, 2022). "Crypto Lender's Wall Street Ascent Is Born of Wife's Frustration". Bloomberg News. Archived from the original on March 23, 2021.
  2. ^ "BlockFi, a crypto firm, reaches a $100 million settlement for failing to register loan products". The New York Times. February 14, 2022. Retrieved November 15, 2022.
  3. ^ "Crypto's Rapid Move Into Banking Elicits Alarm in Washington". The New York Times. September 5, 2021. Retrieved November 15, 2022.
  4. ^ "Crypto Lender BlockFi Suspends Withdrawals in FTX Contagion". finance.yahoo.com.
  5. ^ Paul Vigna; Denny Jacob (July 1, 2022). "FTX Strikes Deal With Option to Buy Crypto Lender BlockFi for Up to $240 Million". The Wall Street Journal. ISSN 0099-9660. Wikidata Q115245435. Retrieved November 16, 2022.
  6. ^ Rooney, Kate (July 1, 2022). "FTX signs a deal giving it the option to buy crypto lender BlockFi". CNBC.
  7. ^ Elaine Yu (November 10, 2022). "Crypto Lender BlockFi Halts Withdrawals, Citing FTX's Problems". The Wall Street Journal. ISSN 0099-9660. Wikidata Q115245387. Retrieved November 16, 2022.
  8. ^ "Crypto lender BlockFi says it has significant exposure to FTX". Reuters. November 14, 2022. Retrieved November 15, 2022.
  9. ^ Alexander Gladstone; Vicky Ge Huang; Soma Biswas (November 15, 2022). "BlockFi Prepares for Potential Bankruptcy as Crypto Contagion Spreads". The Wall Street Journal. ISSN 0099-9660. Wikidata Q115245280. Retrieved November 16, 2022.
  10. ^ Massa, Annie; Butt, Rachel (November 16, 2022). "Crypto Lender BlockFi Plans Bankruptcy Filing Within Days in FTX Fallout". Bloomberg. Bloomberg News. Retrieved November 17, 2022.
  11. ^ "Crypto lender BlockFi files for bankruptcy, seeking chapter 11 protection". November 29, 2022. Retrieved December 13, 2022.
  12. ^ "BlockFi files for bankruptcy as FTX fallout spreads". CNBC. November 28, 2022. Retrieved November 28, 2022.
  13. ^ "Crypto lender BlockFi files for bankruptcy in New Jersey". Reuters. Retrieved November 28, 2022.
  14. ^ Yerak, Becky (March 10, 2023). "Bankrupt BlockFi Has $227 Million in Unprotected Funds at Silicon Valley Bank". The Wall Street Journal. Archived from the original on March 11, 2023.
  15. ^ Nicolle, Emily (March 10, 2023). "After Ellison, Crypto Takes Center Stage at Bankman-Fried Trial BlockFi CEO Zac Prince zeroes in on loans to Alameda". Bloomberg.
  16. ^ "Crypto lender BlockFi emerges bankruptcy". Reuters. October 24, 2023. Retrieved October 25, 2023.
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