FTX files for bankrupcy, bitcoin drops to $17.000 and BlockFi stops processing withdrawals

Photo by Jonathan Borba on Unsplash

FTX files for bankrupcy under Chapter 15

FTX Digital Markets is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code, a court filing showed on Tuesday.

Such a move allows a foreign debtor to shield assets in the country. Non U.S.-companies use the measure to block creditors who want to file lawsuits or tie up assets in the United States.

Parent FTX filed for bankruptcy on Friday in one of the highest-profile crypto blowups, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.

Source: Reuters

BlockFi pauses withdrawals, considers bankrupcy

BlockFi paused withdrawals and limited activity on its platform last week, saying it couldn’t operate business as usual given the uncertainty about FTX.

They are now planning to lay off some of its workers while the troubled firm prepares for a possible chapter 11 itself, people familiar with the matter said.

Bitcoin drops to $17.000

The inflation data encouraged investors, which pushed bitcoin close to $17,000-mark, whereas Ethereum was consolidating above $1,250 levels.

The global cryptocurrency market cap was trading marginally higher around $850 billion, gaining about half a per cent in the last 24 hours. However, the total trading volume tanked about 25% to $62.20 billion.

Give us a call on +372 602 6773 or email us at support@crypto2cash.com. Our members of staff are available between 9.00–18.00 CET to answer any question you may have, especially in regards to easily selling your crypto for fiat currencies.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store

The fast and secure solution to sell crypto for businesses and private individuals alike