They are dead, Jerry, dead. https://tokenist.com/blockfi-announces-bankruptcy-as-ftx-contagion-spreads/ BlockFi, a company with heavy exposure to the now-bankrupt FTX, just announced it was also forced to file for bankruptcy. The company halted withdrawals and limited activity on its website already last week and cited “FTX problems”. On November 14th, BlockFi published an update in which the company denied that most of its assets were custodied at FTX, but stated withdrawals would remain paused and asked its customers not to make new deposits. Earlier on November 15th, WSJ reported that some insiders said BlockFi was planning to file for bankruptcy. BlockFi is the latest victim of the FTX collapse that unfolded rapidly between Tuesday and Friday last week.
Such a pleasure and enjoyment to see this entire space go up in flames. A prediction coming true much earlier provides satisfaction. Perhaps the worst is about to happen, not for bitcoin to go to zero but for bitcoin to go nowhere and locking up the funds for all the believers in hot air for the next 10 years...
Why take pleasure when so many are hurt??? I personally want crypto to collapse so I can load up. But I do not enjoy seeing people hurt.
So you are morally on higher ground when you take financial advantage of others being hurt as compared to someone just laughing at them? Good to know... I would rather have people laughing at my stupidity than profiting from it. And as an explanation, he is smiling because he told you so, but you weren't listening!!!
BlockFi, a cryptocurrency lender and financial services firm, filed for bankruptcy on Monday, becoming the latest company in the crypto industry hobbled by the implosion of the embattled exchange FTX. BlockFi had been reeling since the spring, when the collapse of several influential crypto firms pushed the market into a panic, sending the value of cryptocurrencies like Bitcoin plunging. In June, FTX agreed to provide the company with a $400 million credit line, which BlockFi’s chief executive, Zac Prince, said would provide “access to capital that further bolsters our balance sheet.” The deal also gave FTX the option to buy BlockFi. But that agreement meant that BlockFi was financially entangled with FTX, and its stability was thrust into uncertainty this month after a series of revelations about corporate missteps and suspicious management at FTX. A few days after the exchange collapsed, BlockFi suspended withdrawals, explaining that it had “significant exposure” to FTX, including undrawn amounts from the credit line and assets held on the FTX platform. BlockFi is not the first crypto lender to collapse in a devastating year for the industry. After the spring crash, in which Bitcoin fell 20 percent in a week, two other lenders, Celsius Network and Voyager Digital, filed for bankruptcy. BlockFi, which is based in Jersey City, N.J., was created in 2017 and, as of last year, claimed more than 450,000 retail clients who can obtain loans in minutes, without credit checks. “We are just at the beginning of this story,” Flori Marquez, a co-founder of BlockFi, told The New York Times in September. But its business has attracted close scrutiny from regulators. The Securities and Exchange Commission in February reached a $100 million settlement with BlockFi’s lending arm over registration failures, the first since the regulator warned that it would take action against cryptocurrency firms offering loans that failed to register them as securities or to register themselves as investment companies. The S.E.C. also found BlockFi made false and misleading statements about the level of risk in its loan portfolio and lending activity. The settlement was intended to give BlockFi a path to register with the S.E.C., which would also set an example for other crypto lenders. But cryptocurrency advocates pushed back, saying that the deal supported their claim that regulation had pushed companies like FTX offshore into places where rules are looser, which puts consumers at risk.
Some more info... Crypto lender BlockFi files for bankruptcy in New Jersey https://www.reuters.com/technology/crypto-lender-blockfi-files-bankruptcy-protection-2022-11-28/ U.S. cryptocurrency lender BlockFi said on Monday it had filed for Chapter 11 bankruptcy protection along with eight affiliates in a New Jersey court, the latest casualty since FTX's collapse earlier this month triggered instability in the crypto market. In a court filing, New Jersey-based BlockFi said it owes money to more than 100,000 creditors. It listed crypto exchange FTX as its second-largest creditor, with $275 million owed on a loan extended earlier this year. The company's largest creditor is Ankura Trust, a company that represents creditors in stressed situations, and is owed $729 million. BlockFi had earlier paused withdrawals from its platform and acknowledged it had "significant exposure" to FTX and its associated entities. The move comes weeks after FTX filed for U.S. bankruptcy protection and its founder Sam Bankman-Fried resigned as chief executive. In July, FTX had signed a deal with BlockFi to provide the firm with a $400 million revolving credit facility and an option to buy it for up to $240 million after the crypto lender was hit by a collapse in prices earlier in the year.
Taking advantage of others financially, is the basic of trading. One person profit is another person loss.. and viceversa. Zero sum. One enjoys it because one has a gain, ignoring the negative effect of other people losses. Enjoyment, pleasure, squirting and laughing at others... just for "I told you so" or any other reasons, sounds like schadenfreude on a feel positive day. On a normal day, it sounds like "I have a miserable life and I enjoy it when others are suffering". It doesn't even make a market, just some loud noise in the background.
BlockFi is a great business model for Bitcoin and crypto assets investors. Same with Genesis which was the biggest player in the crypto assets lending/borrowing industry What's so great about BloockFi? I personally was able to borrow 6 figures $ amount by providing my bitcoins as collateral This is very good as it provides liquidity without having to sell my bitcoins. I've paid off my loan last year and have removed my bitcoins from BlockFi Now that BlockFi and most of the crypto assets lending/borrowing are going under, Bitcoin and crypto assets investors will have to sell if they need $ liquidity
Lending forces you to relinquish control so obv it's only a great biz-model for them. The problem is that you're getting 12%pa or whatever at 100% risk of loss. I've put my entire net liq into a DNT exotic and was shitting the entire time... but I cannot understand how anyone can reconcile the binary nature of the credit risk other than to assure themselves that it's money that they can afford to lose. 12% on 10% of your net liq is 1.2% pa impact to you book.