BlockFi has filed for Chapter 11 Bankruptcy.

[ebprince the computer nerd]

Summary

BlockFi, a cryptocurrency-trading app has filed for Chapter 11 Bankruptcy Protection under the District of New Jersey. They have reported $1-10 billion in assets.

 

Quotes

Quote

Distressed crypto firm BlockFi has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey following the implosion of putative acquirer FTX.

In the filing, the company indicated that it had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.

 

My thoughts

The snowball effect has begun. After FTX collapsed within 3 days, many other crypto companies will now be filing. They didn’t only take themselves down, they’re taking everyone down.

 

EDIT: I don’t know if the snowball effect will continue actually. I saw on the article that 2 other companies besides FTX and BlockFi have filed for bankruptcy. Absolutely insane seeing so many companies fold all at once. I have now changed the title.

 

Sources

cnbc

Edited November 30, 2022 by ebprince the computer nerd

[aisle9]

22 minutes ago, ebprince the computer nerd said:

EDIT: I don’t know if the snowball effect will continue actually. I saw on the article that 2 other companies besides FTX and BlockFi have filed for bankruptcy. Absolutely insane seeing so many companies fold all at once. I have now changed the title.

If it keeps up much longer, they're gonna run out of snow.

[jagdtigger]

The pyramid is finally collapsing.....

[Middcore]

[tim0901]

It's easy to laugh at this stuff, and say that these companies had it coming, but it's important to remember that many people have invested significant amounts of their livelihoods into crypto. Livelihoods that are now potentially being wiped away.

 

"Oh but it's their fault for investing in it" I can hardly blame people for investing in something they've seen plastered all over the biggest sporting events of the last few years. Many of these people won't know about the 'unregulated' side of crypto - they just see it as an investment opportunity. One that's being promoted on TV, on Youtube, social media etc. by all their favourite influencers and celebrities. And they don't realise that there are zero protections for their money should something like this happen, unlike with more 'traditional' investments. "It was advertised on the Superbowl, it's got to be legit right?"

 

Just have a bit of empathy, next time you read this kind of thing. For the real people who are being affected here.

 

If you have been affected, by this incident or any of the others recently, and are worried for your safety, don't hesitate to reach out:

https://en.wikipedia.org/wiki/List_of_suicide_crisis_lines

 

[Arika]

20 hours ago, tim0901 said:

I can hardly blame people for investing in something they've seen plastered all over the biggest sporting events of the last few years.

I can, after years of seeing shitcoins fall to scams, creators dumping stock and running, hacks, volatile pricing, NFTs fading into irrelevancy except for the few people trying to prop it up and get rich and exchanges collapsing with no recourse to get your money back over and over, if someone is STILL invested in it after all of that, i have exactly 0 sympathy for anyone that loses money in crypto now.

[Alex Atkin UK]

Investment is supposed to be a gamble, the real corruption is that in many cases these days investors are protected over the health of the business, so people have started to feel like investment is a sure-thing.

[jagdtigger]

1 hour ago, tim0901 said:

but it's important to remember that many people have invested significant amounts of their livelihoods into crypto.

If someone is dumb enough to invest in a pyramid game then they deserve what comes next...

[CTR640]

Good, let them collapse and take the idiots with them that invested in craptos. I don't have any sympathy for the dumb fucks who entered pyramid crap hoping they can buy a Lambo. 

[ebprince the computer nerd]

2 hours ago, Arika S said:

if someone is STILL invested in it after all of that, i have exactly 0 sympathy for anyone that loses money in crypto now.

*sigh*

 

It's painful for everyone to say this in the exact same way. Someone I know has fallen victim to the pump-and-dump Dogecoin. Of course, he invested what he can afford to lose. But it's just painful watching him get excited over a 5% jump after it's fallen 50%+.

[HenrySalayne]

3 hours ago, tim0901 said:

"Oh but it's their fault for investing in it" I can hardly blame people for investing in something they've seen plastered all over the biggest sporting events of the last few years. Many of these people won't know about the 'unregulated' side of crypto - they just see it as an investment opportunity. [...]

Just have a bit of empathy, next time you read this kind of thing. For the real people who are being affected here.

You mean people in this forum, who defended crypto with fervour against people who admonished that crypto currencies are worthless and only the influx of fresh money keeps them afloat?

If somebody actually has lost their life savings they probably fell to crypto fanaticism and not any advertisements...

 

BTW, who was that guy with the rockets and cars again who used a social media network to lure people into crypto and manipulate the market price? I honestly cannot remember.

[ebprince the computer nerd]

1 minute ago, HenrySalayne said:

BTW, who was that guy with the rockets and cars again who used a social media network to lure people into crypto and manipulate the market price? I honestly cannot remember.

I think that guys name was Mark Zuckbook or Tim Apple. Can't remember.

Spoiler

sorry its Zuckmeta now

 

 

[05032-Mendicant-Bias]

Tens of millions of retail gamblers lost their saving because of blockchain, which is bad. Even worse most of those investors didn't realize they were gambling, not investing.

 

Still, the price of Blockchain schemes not collapsing is millions of more people lured into losing their life savings. I believe regulators should have banned the trade of "real money" for "blockchain fake money" at the latest, after the crypto crash of 2018, and at the earliest, after Mt.Goxx collapse of 2014. The only thing that changed in a decade of blockchain frauds, is they are getting bigger and more frequent... The sooner this blockchain fraud is dismantled, the more retail will be protected in the long run. Even if painful, this has to be stopped now. And no bailouts. Even if painful.

 

3 hours ago, ebprince the computer nerd said:

It's painful for everyone to say this in the exact same way. Someone I know has fallen victim to the pump-and-dump Dogecoin. Of course, he invested what he can afford to lose. But it's just painful watching him get excited over a 5% jump after it's fallen 50%+.

A relative came to me after watching the super bowl crypto ads. She wanted to buy 25000$ of BTC at 60000$/BTC because she read it was going at least to 100K$/BTC and maybe to 400K$/BTC, so it was free money! Thankfully, she talked with me first, and after explaining how it worked, she didn't gamble it all away. Otherwise she would now be facing a 70% unrealized loss if bought with coinbase, or a 100% realized loss if bought on FTX. It would have been stressful and a significant loss for her, tough not the end of her financial security.

 

3 hours ago, HenrySalayne said:

You mean people in this forum, who defended crypto with fervour against people who admonished that crypto currencies are worthless and only the influx of fresh money keeps them afloat?

"Line Goes Up" has a great section about the feedback loops in what Dan calls "Self Organizing High Control Group". The worse thing about Blockchain, is that it truly revolutionized the market of frauds. Satoshi created Blockchain with properties ideal as a fraud carrying veichle.

 

6 hours ago, Arika S said:

I can, after years of seeing shitcoins fall to scams

The unfortunate reality is that Blockchain frauds target the people that can least afford it. Financially illetterate people (that may be good in their field of expertise, but don't know that a guaranteed 100X return is not realistic.) The guys that invested in crypto all tell you they have a Lambo, so it MUST work! They see their meager saving eroded by raising inflation and raising costs of living, locked in their home due to a pandemic. People approached with a "solution" that "haters" hate beacuse they just don't understand. Buy in now, buy in early and that's your golden ticket that solves all your financial problems, leave all the naysayers behind "having fun staying poor". HODL thorugh the "bear market" and the price will "go to the moon". Guaranteed. Because the "Line can only go up".

 

P.S. As much as I enjoy this fraud finally, finally dominoing its way to zero, I don't think this is really a "tech news".

[CTR640]

4 hours ago, 05032-Mendicant-Bias said:

Tens of millions of retail gamblers lost their saving because of blockchain, which is bad. Even worse most of those investors didn't realize they were gambling, not investing.

 

Still, the price of Blockchain schemes not collapsing is millions of more people lured into losing their life savings. I believe regulators should have banned the trade of "real money" for "blockchain fake money" at the latest, after the crypto crash of 2018, and at the earliest, after Mt.Goxx collapse of 2014. The only thing that changed in a decade of blockchain frauds, is they are getting bigger and more frequent... The sooner this blockchain fraud is dismantled, the more retail will be protected in the long run. Even if painful, this has to be stopped now. And no bailouts. Even if painful.

 

A relative came to me after watching the super bowl crypto ads. She wanted to buy 25000$ of BTC at 60000$/BTC because she read it was going at least to 100K$/BTC and maybe to 400K$/BTC, so it was free money! Thankfully, she talked with me first, and after explaining how it worked, she didn't gamble it all away. Otherwise she would now be facing a 70% unrealized loss if bought with coinbase, or a 100% realized loss if bought on FTX. It would have been stressful and a significant loss for her, tough not the end of her financial security.

 

"Line Goes Up" has a great section about the feedback loops in what Dan calls "Self Organizing High Control Group". The worse thing about Blockchain, is that it truly revolutionized the market of frauds. Satoshi created Blockchain with properties ideal as a fraud carrying veichle.

 

The unfortunate reality is that Blockchain frauds target the people that can least afford it. Financially illetterate people (that may be good in their field of expertise, but don't know that a guaranteed 100X return is not realistic.) The guys that invested in crypto all tell you they have a Lambo, so it MUST work! They see their meager saving eroded by raising inflation and raising costs of living, locked in their home due to a pandemic. People approached with a "solution" that "haters" hate beacuse they just don't understand. Buy in now, buy in early and that's your golden ticket that solves all your financial problems, leave all the naysayers behind "having fun staying poor". HODL thorugh the "bear market" and the price will "go to the moon". Guaranteed. Because the "Line can only go up".

 

P.S. As much as I enjoy this fraud finally, finally dominoing its way to zero, I don't think this is really a "tech news".

Very worrying indeed. My cousin came to me and he wanted both of us to invest €250 and that was many years ago, like in the R9 290 mining era.

Glad it never happened. Even "investing" €1 is way too much for that pyramid nonsense. But the fact that your relative came to you to invest $25K so she would get like $100K or even $400K? Isn't it false advertising or scamming at maximum? Uninformed people sees that ad and they immediately sell their kidneys, house, cars, kids, parents to gamble any penny they got? You wrote she didn't gamble it all away, so she still gambled some away?

[JoaoPRSousa]

Sources for crypto being a pyramid please

[05032-Mendicant-Bias]

23 minutes ago, CTR640 said:

But the fact that your relative came to you to invest $25K so she would get like $100K or even $400K? Isn't it false advertising or scamming at maximum?

Yes. The super bowl crypto ads has spawned at least one class action lawsuit against the actors that promoted this fraudolent scheme to the public.

 

My relative didn't gamble with crypto in the end. The get quick rich proposition is very alluring, it's why crypto is the way it is, and why lotteries and gambling are a thing.

20 minutes ago, JoaoPRSousa said:

Sources for crypto being a pyramid please

Which one? Tens of thousands of blockchains were revealed to be fraudolent schemes already. It's not just pyramid scheme. Every financial fraud in history has been dusted off and redeployed using blockchain in countless effective variations.

 

https://www.coinopsy.com/dead-coins/

 

[JoaoPRSousa]

1 hour ago, 05032-Mendicant-Bias said:

Which one? Tens of thousands of blockchains were revealed to be fraudolent schemes already. It's not just pyramid scheme. Every financial fraud in history has been dusted off and redeployed using blockchain in countless effective variations.

 

https://www.coinopsy.com/dead-coins/

 

People here were calling all of crypto a pyramid scheme. Must have been my misunderstanding...

[Fasterthannothing]

 

I actually used to invest heavily in crypto but exited a while back and took my gains before the entire scheme collapsed. So I feel for the small investors who got caught in this but I have no sympathy for big fish pumping and dumping and pulling fake numbers out of thin air.

[jagdtigger]

25 minutes ago, JoaoPRSousa said:

 

People here were calling all of crypto a pyramid scheme. Must have been my misunderstanding...

Guess who owns a lot of crypto? The owner! They want their worthless fake currency to blow up so they can basically scam ppl out of their money. To that end they start a hype train essentially initiating the pyramid scheme.

[Stahlmann]

Yes, let it all fade into nothing. Maybe someday people realize that "get rich quick" shemes only help the rich getting richer, not the poor.

[Brooksie359]

15 hours ago, tim0901 said:

It's easy to laugh at this stuff, and say that these companies had it coming, but it's important to remember that many people have invested significant amounts of their livelihoods into crypto. Livelihoods that are now potentially being wiped away.

 

"Oh but it's their fault for investing in it" I can hardly blame people for investing in something they've seen plastered all over the biggest sporting events of the last few years. Many of these people won't know about the 'unregulated' side of crypto - they just see it as an investment opportunity. One that's being promoted on TV, on Youtube, social media etc. by all their favourite influencers and celebrities. And they don't realise that there are zero protections for their money should something like this happen, unlike with more 'traditional' investments. "It was advertised on the Superbowl, it's got to be legit right?"

 

Just have a bit of empathy, next time you read this kind of thing. For the real people who are being affected here.

 

If you have been affected, by this incident or any of the others recently, and are worried for your safety, don't hesitate to reach out:

https://en.wikipedia.org/wiki/List_of_suicide_crisis_lines

 

While I have sympathy for the normal people who invested in this. I have 0 sympathy in the obnoxious crypto bros who continually stated that cryptocurrency was the next big thing and you just don't understand the technology. They made even more people invest and are partly responsible. Not to mention they are super annoying. 

[CTR640]

1 hour ago, Brooksie359 said:

While I have sympathy for the normal people who invested in this. I have 0 sympathy in the obnoxious crypto bros who continually stated that cryptocurrency was the next big thing and you just don't understand the technology. They made even more people invest and are partly responsible. Not to mention they are super annoying. 

Don't forget the way how to try to correct you in a very annoying and arrogant manner. Like, "are you stupid? I'm smarter and better than you so what you asked is very stupid."

[Needfuldoer]

 

[Rex Hite]

Since I don't cheer when strangers make money in speculative schemes I don't commiserate when they lose.

 

 

[Brooksie359]

11 minutes ago, CTR640 said:

Don't forget the way how to try to correct you in a very annoying and arrogant manner. Like, "are you stupid? I'm smarter and better than you so what you asked is very stupid."

My favorite part was I would always ask them to explain what I don't understand and they would always throw back at me you need to do your own research. Alot of talk with 0 substance especially the whole fiat currency isn't backed by anything when obviously they have very little knowledge about fiat currency if they think it's not backed by anything. I mean at least if the USD goes down in value it can still pay my mortgage and car payments all the same. Can't say the same about cryptocurrency.