Another crypto company could file for bankruptcy, and with it billions of dollars of lost customers in a market that is going through its worst moment in a long time.
The cryptocurrency market is experiencing turbulent times, something that is causing a lot to be lost money investors but that can also make them earn a lot in the long term if they know how to take advantage of the market situation market.
However, this digital currency crisis is already claiming victims in certain niche companies, and the FTX exchange recently fell, and it will not be the last.
And the bankruptcy of FTX will have a domino effect towards many other companies, and now according to The Wall Street Journalthe crypto crisis is far from over, because another company in this niche market is likely to declare bankruptcy, and with it heavy losses for customers.
Specifically, the aforementioned medium talks about the company cryptocurrencies call BlockFi which curiously was rescued by FTX over the summer and which is preparing for a possible bankruptcy declaration.
BlockFi had between $14 billion and $20 billion in customer money as of last year, and that could be worth absolutely nothing anytime soon.
However, the platform has already stopped withdrawals and limited its activity claiming that it cannot continue its operations while still dealing with the FTX collapse and market uncertainty.
A destiny seems to have already been announced
Even though BlockFi’s COO, Flori Marquezhas assured investors that “operations will not be affected”, This type of statement sounds familiar to many of us before a bankruptcy.
The Wall Street Journal is clear stating that BlockFi is planning layoffs and they intend to “Filing for Chapter 11 bankruptcy in the United States”.
In their own publication last week, from BlockFi they already warned that “had significant exposure to both FTX and its sister firm Alameda”.
“There are a number of scenarios that may be available, and we are now working to determine the best path forward. BlockFi has the liquidity to explore all options and we have engaged expert outside advisors who are helping us navigate the next steps.”.
In this way, it becomes more and more difficult to trust this type of external platforms to store the digital currencies and the user must look for other alternatives, such as hardware wallets, so as not to depend on others.