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Crypto lender BlockFi files for Chapter 11 bankruptcy as dominoes fall from FTX failure

Nov. 28, 2022 11:13 AM ETBitcoin USD (BTC-USD), ETH-USDBy: Max Gottlich, SA News Editor100 Comments

processor chip, tech environment, blockchain concept


Cryptocurrency lender BlockFi said Monday that it filed for Chapter 11 bankruptcy protection in the U.S. in an effort to stabilize and restructure its business following the abrupt downfall of crypto exchange FTX.

Major digital tokens, in turn, extended their losses

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Comments (100)

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Lucien Meta profile picture
Thank you
Fascinating to watch high-level suckers lose other people's money.
Way to "SLOPM"!
I have to wonder at the IQ of anybody that still held crypto on BlockFi after the Three Arrows blow up! Writing was so clearly on the wall that this domino was going to fall sooner or later. I personally got out well before Three Arrows as it seemed clear to me that crypto winter was here and these CeFi entities were going to be in major trouble
Djreef1966 profile picture
Here we go around the drain, round the drain, round the drain.
Here we go around the drain with our crypto!
Bitcon and Twitter/Musk are the best real-time comedies going on the internet….
NeitherSide profile picture
Cue Kenny Rogers, The Gambler.
Dividend Pro profile picture
Cathy Wood thinks all you crypto whiners are a bunch of toothless backwoods wussies.

She plainly stated that BTC is going to a $Million per coin, and here you are whining about little stuff. Buy all the BTC you can by maxing out your home equity line of credit and take a cash advance on your credit cards, and maxing out your margin.

Sell all your dumb dividend paying stocks that pay a useless 3% yield. Sheesh, holding those is dumber than dumb. You could have a 50-bagger BTC instead. Money in the markets is made overnight, by those who know what you will never know. Unless you are one of the enlighted. You are not, you are a mushroom in the dark according to Cathy, and she is trying to educate you for free.

You will be a mega-millionaire with 50 coins. What do you not understand???

Now run along and tell all your friends….
@Dividend Pro - Strange how this sounds just like a cult.
Dividend Pro profile picture
“Dividend Pro - Strange how this sounds just like a cult.”

I think you are onto something. The Dividend Investing cult. I think it is also.
Yeah, but the purple Cool Aid is delicious, because everyone is drinking it.

That is why Cathy is trying to save you, right? And a lot of people are already listening to her, but she needs more to hit that $1Mil/coin mark. And she needs your help.

Oh, Wait! …What?
M Elan profile picture
@Dividend Pro how do I get these lottery tickets under the mattress? Do I even want to trade my vaporcoin for ANY number of useless dollars? Maybe that’s what she means: when all is hopeless and you need a bowl of soup just present your long hoarded vaporcoin.
Who Moved My Cheese profile picture
Covid, Bitcoin, Pronouns, Trump, Qanon, Memes, Musk, Capital Attack, Daily Mass Shootings, Skyrocketing prices for everything, shortages for everything, records broken for everything and on and on and on...

Talk about a massive s**t show. Will go down as one of the most ridiculous and destructive decades since the 19th century.
@Who Moved My Cheese The second half of the 20th century wasn't so great either.
M Elan profile picture
@Dogleg5 Nor was the first half. War, depression, fascism, communism, just lovely.
BTC support around 12K. Down another 25%.
Djreef1966 profile picture
They’ll all eventually end up in the same place.
How long will the crypto scam continue ? Why do governments allow this scam ?
@Shourey01 see the Great John Kenneth Galbraith's book on the Great Depression for how exactly mania's and Bubbles work. Tremendous insights can be gained by reading this tome.
metalhead profile picture
@Shourey01 Do governments stop you from betting your entire weeks pay on the outcome of some sportsball game?

Do they stop you from loaning money to Uncle Billy, who promises to start his own business hauling junk, then takes the money to Vegas?

Google the term "moral hazard."
@metalhead The government does not allow me to sell contaminated water and food, so why allow companies to sell contaminated and pernicious financial products ??
Sure glad that scheme was built on the solid foundation of make believe, unicorns and pixy dust for all involved. Who could have possibly predicted such a thing?
The Stock Stooge profile picture
Dogecoin still has a $13 billion market cap, and is worth more than American Airlines.
@The Stock Stooge - Dogecoin just shows how nuts crypto is. It doesn't even pretend to be something of value, yet people still give it value. The only reason it has such a large 'market cap' (I use that term loosely) is because there are 10K coins created every minute. IOW there are over 420M coins created every month, but people still think it's worth something.
DayTradeLongTerm profile picture
@bluetech the same can be said about the US dollar / US debt...
@DayTradeLongTerm - No it can't, not even close. Currency is highly regulated by Central Banks and debt doesn't increase the amount of currency available.
FTX did lists lots of liabilities, the list will continue as more related parties "come clean"....Bitcoin and Ethereum would be last men standing, BUT AT WHAT PRICE LEVEL.....
metalhead profile picture
Don't trade that ponzi!
That nasty-wasty ponzi!
I just don't think you understand
Cause if you trade that ponzi
That coked-out Madoff ponzi
It might have blown up before you ran!
All the late to the game speculators ruined crypto by using centralized exchanges. Crypto is meant to be decentralized. These centralized companies failing is a good thing.
stockmarketinvesting profile picture
The Crypto ponzi is blowing up.
HootieTreads profile picture
"BlockFi's executives...estimate the company has between $1 and $10 billion in both assets and liabilities."

What kind of accounting is this? Aka you hold a bunch of sh*tcoins
@HootieTreads A fool and his money will soon part.
Apt Learner profile picture
What saved my funds on Voyager was selling everything I held and going to cash, that was the first thing returned to clients in bankruptcy proceedings so I got all my money back while those that kept their crypto are still in limbo. I posted this tactic when BlockFi stopped withdraws on a previous article, hope some people followed it.
@Apt Learner Maybe they'll get their BTC back in a year, but who knows how much value it has at that point. The Mt Gox (?) guys got lucky in a sense? Not sure how this thing works to be honest.
Who Moved My Cheese profile picture
"My money is safe." Bwahahahahaha!
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