NewsletterRipple Counsel Calls Out SEC Over BlockFi Bankruptcy
BlockFi, a cryptocurrency lender has become another firm to fall due to the FTX collapse. BlockFi filed for chapter 11 bankruptcy protection due to extensive exposure to the defunct crypto exchange. However, Ripple General Counsel has allegedly blamed the U.S. SEC for these circumstances.
Ripple counsel questions SEC involvement
Stuart Alderoty, Ripple General Counsel mentioned BlockFi bankruptcy filing and called it another SEC “Regulation by enforcement” success story. Earlier, he raised questions about the SEC settlement and FTX-BlockFi consumer fund connection.
He stated that this bankruptcy filing comes after a $100 million BlockFi and SEC deal. While there is a $275 million loan outstanding to FTX from BlockFi. However, there are still unknown amounts owed to BlockFi from FTX.
Alderoty highlighted that nothing was ever registered while there are still questions about the fine paid in the deal. If paid then whose money was used to pay for the settlement?
Coingape reported that Ripple General Counsel inquired about the first two payments around the $100 million fine initiated by the SEC. However, question the commission to show BlockFi ability to pay for the settlement.
BlockFi Creditors Exceed 100K
However, the bankruptcy filing in a New Jersey court comes amid the downfall of the crypto market. Bitcoin price has dropped by more than 70% from its all time high (ATH). Experts highlight that BlockFi’s Chapter 11 restructuring underlines the risk related to the crypto market.
As per reports, BlockFi’s creditors exceed 100k while its asset and liabilities are between $1 billion to $10 billion. Ankura, a Trust Company is its largest creditor which owes over $729 million. The same company is the trustee of BlockFi’s interest account.
The crypto lending platform mentioned that the liquidity crisis happened due to its exposure to the FTX through loans to Alameda. In a separate filing, BlockFi stated that it is planning to lay off the majority of its 292 employees.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- U.S. SEC’s Crypto Task Force Sets Dec. 15 for Privacy Roundtable After Previous Delay
- Grayscale Files S-1 for New SUI ETF After 21Shares’ Successful First Fund Launch
- Do Kwon Faces Up to 12 Years in Prison Over ‘Colossal’ Role in $40B TerraUSD Collaps
- ProShares Drops 3x Bitcoin, Ethereum, XRP ETF Plans After SEC Pushback
- Bitcoin Eyes Fresh Demand as Indiana Advances Bill for Crypto Investments
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
- Is Cardano Price at Risk of a 50% Crash Ahead of the Midnight Launch?
- Is Chainlink Price Headed for $20 as Reserves Pass 1M LINK?
- Ethereum Price Breaks Out of Falling Wedge: Next Target Now Set at $5K
