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The Wall Street Publication > Blog > Tech > BlockFi Affirms Efforts to Return Customer Funds
Tech

BlockFi Affirms Efforts to Return Customer Funds

Editorial Board Published November 29, 2022
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BlockFi Affirms Efforts to Return Customer Funds
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BlockFi Inc. was shocked by allegations of systemic failures at FTX, with which it has extensive business, and now the cryptocurrency lender is working hard to return customer funds after filing for bankruptcy this week, a BlockFi lawyer said Tuesday. 

Jersey City, N.J.-based BlockFi, which secured a rescue loan from FTX in June to shore up its liquidity, reviewed unaudited FTX financial reports as part of due diligence it performed at the time of the transactions, said Joshua Sussberg, a lawyer for BlockFi, during its debut hearing in the U.S. Bankruptcy Court in Trenton, N.J. BlockFi filed for chapter 11 on Monday after the loan fell apart in the wake of FTX’s collapse earlier in November.

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