Bankruptcy Leads To Lawsuit
Hours after BlockFi filed for Chapter 11 bankruptcy, the former crypto lending platform filed a lawsuit against Sam Bankman-Fried. BlockFi is targeting his shares of Robinhood that were promised as collateral by Bankman-Freid’s holding company Emergent Fidelity Technologies.
BlockFi is one of only the latest companies filing bankruptcy after the ongoing implosion of FTX.
The filing includes accusations stating the payment agreement reached on November 9th had not been honored by Emergent. BlockFi is now demanding that the collateral be turned over and naming the collateral as, “including certain shares of common stock”, in their filing.
BlockFi’s Debt Comes To Light
In a statement made by BlockFi, it is known that they have over 100,000 creditors. Including assets ranging from $1 billion to $10 billion with liabilities in the same range. BlockFi continues to deny that the main portion of its assets were held by FTX, yet openly admits it has “significant exposure” to FTX and its corporate entities.
BlockFi has also sold off $239 million of its own cryptocurrency and is laying off 250 to 370 workers. It is safe to say that BlockFi is scrambling to cover the bankruptcy expenses.
The filing of the lawsuit indicates the focus BlockFi is showing to regaining all owed obligations, even if that means going after FTX and Brinkman-Fried. One can only hope BlockFi intends to take care of the investors who suffered from this entire situation.
While the rest of the dominos continue to fall following the collapse of FTX, we turn our focus on the future of crypto.
What do we want that to look like, to act like, to achieve? I urge everyone to always do their due diligence and search for knowledge when engaging with the crypto world. I also urge all the veterans (OG’s) of the crypto world to not be silent with sharing your experiences and knowledge. Together we can make a change to strengthen security, raise awareness, and provide education.
“Your Keys, Your Crypto”