Cryptocurrencies fall across the board BlockFi bankruptcy news adds to market woes
Cryptocurrencies sank across the board on Monday as BlockFi filed for bankruptcy protection in the U.S., becoming another bout of death in the cryptocurrency world following the rapid collapse of FTX. Earlier, cryptocurrencies were also dragged down by weakening investor risk appetite as global markets fell.
Bitcoin was down 3.2 percent at one point and was at $16,090 as of 11:04 p.m. New York time. Ether sank about 5 percent, and Solana, Avalanche and Dogcoin were down even more.
BlockFi said in a statement that it will "focus on collecting all debts owed to BlockFi by its counterparties, including FTX and its related entities," under a Chapter 11 bankruptcy proceeding, adding that collection will be delayed due to FTX's own bankruptcy.
Chapter 11 of the Bankruptcy Code allows businesses that file for bankruptcy protection to continue to operate while they develop a plan to repay creditors.
Bitcoin has fallen about 21% cumulatively so far in November, its worst monthly performance since June.