BlockFi Files for Bankruptcy, Becoming Latest FTX Domino

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 29 November 2022

⏱️ 16 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Circle and Kraken. On today’s episode, NLW returns to his usual daily programming with a review of crypto contagion that took place during the last week. He looks at BlockFi, which filed for Chapter 11 bankruptcy protection in New Jersey today, as well as Genesis and FTX itself. (Genesis Global Capital is a subsidiary of Digital Currency Group, the parent company of CoinDesk.) - Nexo Pro allows you to trade on the spot and futures markets with a 50% discount on fees. You always get the best possible prices from all the available liquidity sources and can earn interest or borrow funds as you wait for your next trade. Get started today on pro.nexo.io. - Circle, the sole issuer of the trusted and reliable stablecoin USDC, is our sponsor for today’s show. USDC is a fast, cost-effective solution for global payments at internet speeds. Learn how businesses are taking advantage of these opportunities at Circle’s USDC Hub for Businesses. - Kraken, the secure, trusted digital asset exchange, is our sponsor for today’s show. Kraken makes it easy to instantly buy 185+ cryptocurrencies with fast, flexible funding options. You’re covered by industry-leading security and award-winning Client Engagement, available 24/7. Sign up and trade today at kraken.com. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is "Back To The End" by Strength To Last. Image credit: PM Images/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	we got confirmation of what was widely expected as Block 5 filed for Chapter 11 bankruptcy protection
0:04.9	in New Jersey. According to official releases, the company has about $257 million of cash on hand.
0:11.3	They estimate both their assets and liabilities between $1 billion and $10 billion, and they estimate
0:16.0	more than 100,000 creditors. Some of the largest of those include Ankora Trust Company, which has a
0:21.4	$730 million unsecured claim, FtXUS, which has a $275 million unsecured claim, and the good old
0:28.0	SEC, which has a $30 million unsecured claim. As you might imagine, much hay is being made out of that
0:33.5	particular creditor. Welcome back to The Breakdown with me, NLW.
0:40.0	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:45.8	The breakdown is sponsored by nexo.io, Circle, and Cracken, and produced and distributed by
0:50.9	CoinDesk.
0:53.5	What's going on, guys? It is Monday, November 28th, and today we are talking about Block
0:58.7	FI's bankruptcy. Before we get into that, however, if you are enjoying the breakdown,
1:03.2	please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper
1:07.0	into the conversation, come join us on the Breakers Discord. You can find a link in the show notes or go
1:11.6	to bit.ly slash breakdown pod. All right, folks, welcome back. I hope you had a wonderful
1:19.0	Thanksgiving week for those of you here in the U.S. And for everyone else, I hope you enjoyed
1:23.7	the Grateful for Bitcoin series. I had a ton of fun in those conversations,
1:28.2	and if you did as well, hop in the Discord and let me know what episodes and topics you
1:32.2	were most interested in. We've got a number of end-of-year interviews coming up, many of which
1:36.8	will have similar themes, so please, please let me know what you want to hear more about.
1:41.1	All right, well, today we're catching up on a bunch of news that has happened
1:44.3	over the last week. However, where we have to start is something that seems like it's been a long
	...

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