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BlockFi Files for Bankruptcy, Binance Rumblings and Bitfront Closes

Steve Miley trader
Updated 29 Nov 2022

BlockFi has filed for bankruptcy, Binance red flags seen on Twitter and crypto exchange Bifront is closing down

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BlockFi Files for Bankruptcy

Crypto lender, BlockFi, has filed for Chapter 11 bankruptcy protection. BlockFI stopped allowing withdrawals on 11 November and is another example of the contagion impact of the collapse of the major crypto exchange, FTX, which we have documented in our reports here. In a statement announcing its Chapter 11 bankruptcy filing, BlockFi said: “These Chapter 11 cases will enable BlockFi to stabilise the business and provide BlockFi with the opportunity to consummate a reorganisation plan that maximises value for all stakeholders, including our valued clients.”

Twitter Rumblings on Binance

Although far from offering any conclusive proof, a prominent decentralised finance commentator on Twitter, Dylan LeCLair, has been highlighting parallels between comments and action by Binance CEO Changpeng Zhao, known as CZ, and similar comments that came from Sam Bankman Fried (SBF) through the summer. Although not offering any direct proof, LeClair, a co-founder of 21stParadigm.com, has Tweeted, “Is anyone else getting weird vibes from CZ right now? It’s like he’s running the SBF summer playbook: Public projection of strength and talks of “industry bail outs” while attempting to raise funds. I’m not claiming anything, but the similarities are… odd.

Bitfront Shuts Down

Bitfront , the U.S. crypto exchange backed by Japanese social media firm Line Corp, has suspended new sign-ups and will cease operations in a few months. This has been despite trying to overcome challenges in the quickly developing industry. On Sunday, Bitfront posted a statement on its website stating, “we have regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy.

Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.