S. Korea signals delays to crypto income tax
Korea HeraldMAR 11 2023
BlockFi, a New Jersey-based cryptocurrency lender, announced Monday that it has filed for Chapter 11 bankruptcy protection after the firm was caught up in the recent collapse of the FTX exchange.
In June, Sam Bankman-Fried's FTX bailed out Zac Prince's BlockFi with a loan of $250M and later partnered with the cryptocurrency lender. But FTX filed for bankruptcy on Nov. 11.
In its bankruptcy filing, BlockFi noted it had more than 100k creditors with assets and liabilities ranging from $1B to $10B. It also owes $30M to the US Securities and Exchange Commission.
This is just one of many digital-asset firms to collapse, demonstrating that stringent government regulations for transactions in virtual coins are necessary. An unregulated business environment may have irreversible and disastrous economic consequences — for lenders, buyers, and the state.
The whole point of cryptocurrency is its decentralized structure and immunity to being governed by wealthy conglomerates or authoritarian governments. It's essential to keep cryptocurrency technology as it's supposed to be – decentralized and transparent – to avoid further crypto explosions and bankruptcies.