FTX Snowball effect starts with BlockFi, When BlockFi was founded for investors to get into the cryptocurrency game, but not sure where to start?

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BlockFi Bankruptcy
From Boom to Bust
BlockFi is not the only one

BlockFi Bankruptcy

It was the perfect solution for investors and traders alike!
Based in Jersey City, N.J., they offer loans backed by cryptocurrency with no credit checks required
meaning you can get started right away.
Plus, their accounts offer high-interest rates on crypto deposits,
making it a great way to grow your investment.
With over 450,000 retail clients already on board, and it’s a trusted name in the industry.
All this was great until the fall of FTX.

The rise and fall were a wild ride for those who were involved.
The company was one of the first to offer cryptocurrency lending services to ordinary investors,
and it quickly became a favourite among those looking to get in on crypto mania.
However, BlockFi’s financial ties to FTX proved to be its downfall,
as the exchange’s recent troubles have shaken the crypto industry to its core.
Now, BlockFi is filing for bankruptcy, leaving many investors wondering what will come next.
When BlockFi ran into trouble earlier this year, it turned to FTX for help.
The exchange agreed to provide the company with a $400 million credit line,
which has served as a safety net for BlockFi.

This deal was seen as a vote of confidence in the company by the crypto industry,
and it has helped BlockFi stabilize itself.

In announcing the funding, Zac Prince, the chief executive of BlockFi,
said it would provide “access to capital that further bolsters our balance sheet.”
The deal also gave FTX the option to buy BlockFi.
BlockFi subsequently borrowed $275 million from a subsidiary of FTX, according to its bankruptcy filings.
That financial entanglement meant that when FTX toppled and was forced
to file for bankruptcy amid revelations of corporate missteps
and suspicious management, BlockFi began to struggle, too.

From Boom to Bust

BlockFi had significant exposure to FTX, which collapsed a few days ago.
This caused BlockFi to lose access to additional funds that
it was counting on under the agreement between the two companies.
Additionally, BlockFi had other assets held on the FTX platform that is now inaccessible.
Combined, these factors have put BlockFi in a very difficult financial position.

In its filing on Monday, BlockFi stated that it has about $257 million
in cash available to help support its business through this bankruptcy process.
The company also announced plans to reduce expenses considerably including labour costs in order.

BlockFi is not the only one

Line Corp, the Japanese social media firm, has announced that it is suspending
new sign-ups and credit card payments for its crypto exchange.
The exchange will cease operations in a few months despite efforts
to overcome challenges in the rapidly evolving industry.

This is a disappointing development for those who have been hoping
that Line would be a major player in the cryptocurrency space.
However, it seems that the company has been unable to overcome
the challenges posed by this rapidly changing industry.
It remains to be seen whether another crypto exchange will be able to take Line’s place.

in a statement on its website on Sunday.
“We regret to inform our investors that we have made the difficult decision to shut down BITFRONT.
This was not an easy decision, but we believe it is in the best interest of our company and shareholders.
We would like to thank our loyal customers and investors for their support over the past year.
We remain committed to growing the LINE blockchain ecosystem and LINK token economy,
and we hope that you will continue to support us in this endeavour.” the California-based company said.

As of Nov. 28, Bitfront has suspended new sign-ups and credit card payments.
The company clarified that interest in deposits made between Dec. 5 and Dec. 11
will be paid out on Dec. 13, 2022, this may cause some inconvenience for their users,
but they want to assure you that they are doing everything in their power
to make sure that Bitfront remains a safe and secure platform for investing your hard-earned money.

FTX Snowball effect starts with BlockFi

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