BlockFi Files for Bankruptcy

This decision comes only two weeks after BlockFi suspended user withdrawals.
Key TakeawaysBlockFi filed for Chapter 11 bankruptcy protection, and will try to restructure their operations.
The firm owes money more than 100,000 creditors. It has liabilities of $1 billion to $10 billion.
BlockFi suspended user withdrawals immediately after FTX’s collapse on November 11.
Share this article. BlockFi, a crypto lending company, has filed for Chapter 11 bankruptcy protection. This follows the “shocking” events surrounding FTX, which collapsed in the second week of November. It also acknowledged that it had made the difficult but necessary decision to suspend withdrawals on November 11th. BlockFi stated that it will now concentrate on recovering obligations, including those owed by FTX or its related companies. BlockFi is exposed to these companies in a significant way, including obligations from Alameda Research and deposits at FTX.US. BlockFi has significant exposure to these companies, including obligations from Alameda Research, deposits at FTX and an undrawn credit line from FTX.US. He added that the company “looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders.”BlockFi says it has $256.9 million of cash on hand to support business operations even as user activity remains paused. According to Reuters, BlockFi’s bankruptcy filing lists more than 100,000 creditors. According to Reuters, BlockFi’s bankruptcy filing lists more than 100,000 creditors. Its largest creditor is Ankura Trust, a corporate trust company to which it owes $729 million.The U.S. Securities and Exchange Commission (SEC) is also among BlockFi’s creditors, as the company still owes the regulator roughly $30 million as part of a February settlement.Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other digital assets.Share this articleThe information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. does not provide investment advice. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News