Crypto Lender BlockFi Files For Bankruptcy

According to the filing, BlockFi has implicit 100,000 estimated creditors and an estimated $1-10 cardinal successful liabilities. The filing confirms that the steadfast has $256.9 cardinal currency successful hand.

A released connection connected BlockFi’s Twitter explained: “As portion of our restructuring efforts, we volition absorption connected recovering each obligations owed to BlockFi by counterparties, including FTX.

Acting successful the champion involvement of our clients is our apical absorption and continues to usher our way forward. Chapter 11 is simply a transparent process and we volition proceed to pass with our clients to guarantee they perceive straight from us.”

This filing is yet different illustration of lenders facing insolvency successful caller months successful the aftermath of industry-wide collapse. In July of this year, Celsius filed for bankruptcy, and conscionable recently, Genesis halted withdrawals, forcing Gemini Earn to arsenic well.

According to a root that spoke with Decrypt, alongside the bankruptcy proceedings, BlockFi volition besides beryllium laying disconnected a “large portion” of its staff.

BlockFi was bailed retired by FTX successful June of 2022 arsenic a effect of contagion from the illness of cryptocurrency hedge money Three Arrows Capital, and was soon acquired by FTX.

With the caller implosion of FTX and the connected Alameda Research hedge fund, questions astir BlockFi’s quality to screen lawsuit assets began to surface. These lone accrued aft BlockFi confirmed they did not person further clarity connected the concern surrounding FTX and began limiting customers connected their platform, including halting withdrawals.