BlockFi owes creditors NOK 300 million. – H 24

BlockFi, a cryptocurrency financial services and lending company, filed for bankruptcy protection on Monday, becoming the latest company in the crypto industry to be affected by the collapse of cryptocurrency exchange FTX.

BlockFi owes the US Financial Supervision Authority (SEC) $30 million, which is equivalent to 300 million kroner.

This makes SEC BlockFi the fourth-largest creditor, behind Ankura Trust, which claims more than NOK 729 billion, and West Realm Shires Inc. , which operates FTX USA, and could claim $275 million, as well as an unnamed client who has a claim of NOK 480 million.

In a lawsuit, the New Jersey-based company said it owed money to more than 100,000 creditors.

The company is one of several in the cryptocurrency industry that has had a very difficult year. This spring, several influential cryptocurrency companies collapsed and the market was marked by panic. Then bitcoin fell 20 percent in a week, and lenders sought Voyager Digital and Celsius Network for bankruptcy protection.

Last week, Bitcoin fell to its lowest level in two years. For the year, bitcoin has depreciated by 66 percent.

BlockFi said in a statement that it will use the Chapter 11 process to “focus on securing all obligations to BlockFi from its peers, including FTX and related entities,” adding that recovery will likely be delayed with FTX’s bankruptcy, according to Bloomberg.