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Sunday, February 5, 2023

Following BlockFi Bankruptcy Announcement, Bitfront Exchange Steps Away From Industry

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FTX, once among the world’s largest cryptocurrency exchanges, is now the subject of investigations by authorities. The company filed for bankruptcy earlier this month, while cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection on Monday, hurt by exposure to the FTX collapse.

Line opened Bitfront in 2020. It will now focus on its token and native blockchain ecosystem. His decision to shut down the exchange came on the same day that crypto lender BlockFi filed for bankruptcy.

BlockFi’s bankruptcy

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BlockFi, founded in 2017 by Zac Prince and Flori Márquez, provided loans to clients using crypto assets as collateral. Unlike Bitfront, BlockFi’s problems were directly related to FTX. The lender had announced earlier this month that it had halted withdrawals, citing “significant exposure” to FTX, as well as its sister hedge fund Alameda. FTX, Alameda and dozens of affiliates filed for bankruptcy on November 11.

Shortly after filing for Chapter 11, BlockFi filed a lawsuit against FTX founder Sam Bankman-Fried’s Emergent Fidelity Technologies, demanding that he hand over the collateral that BlockFi claims is owed to him.

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The prices of digital currencies have plummeted. Bitcoin, the world’s largest cryptocurrency, is down around 65% so far this year.

Source: Ambito

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