- In July, FTX signed a deal with BlockFi to provide a revolving credit facility.
- NestCoin is in trouble after the FTX bankruptcy filing.
FTX Exchange collapse has affected over 150 companies, including Alameda Research and BlockFi, affiliated with the FTX group.
BlockFi, a crypto lender, is among the most affected companies after the FTX collapse, and the lender is on the brink of filing for Bankruptcy for chapter 11.
Earlier on 11 November 2022, BlockFi noted that it could not operate the business as usual due to uncertainty associated with the bankrupt crypto exchange.
BlockFi prioritises its customers’ safety from potential financial damages if the SBF-backed company liquidates. Cryptosphere has already witnessed some of the worst scenarios in the sector, which will not surprise investors.
BlockFi noted on its official website that “the company is not able to operate business as usual, and have limited platform activities including pausing client withdrawals as allowed by the team,we request that clients not deposit to BlockFi wallet or interest account at this time.”
BlockFi, after the collapse of the crypto exchange, denied the allegation of its exposure with FTX. Still, some reliable media sources and crypto believers revealed that BlockFi is believed to have $400 million exposure in FTX.
The entire crypto market is in huge trouble after Terra(Luna) crashes and crypto winters. Although the market was quickly improving, the collapse of the third biggest crypto exchange, FTX, has shown major downtrends in the last few days.
Another known firm that is affected by the FTX collapse is NestCoin(a Nigerian Crypto product Startup).
Nestcoin has dismissed its employees as its startup fails to function appropriately after the massive disbalance of the FTX exchange and its important backing.
Nestcoin is a digital protocol established in February with a motto to build, operate, and invest in crypto-related products like Web3 and non-custodial products for users in the mainstream market across Decentralized Finance(Defi), digital art, and gaming.
BlockFi never admits its exposure in FTX officially. In one of the company statements, it is noted that ” We do have significant exposure to FTX and associated corporate entities that encompass obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US.”
Sam Bankman-Fried established FTX in 2019; in the beginning, the company struggled in the market to gain a user base, and after two years of hard work, FTX’s exchange became the third biggest global crypto exchange globally.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/11/16/blockfi-on-the-brink-of-filing-bankruptcy-report/