Crypto Lender Blockfi Files for Bankruptcy Protection to ‘Maximize Value for All Clients’

On Nov. 28, 2022, the crypto lender Blockfi informed the nationalist via a property merchandise that the institution has voluntarily petitioned for Chapter 11 bankruptcy protection. Blockfi is present 1 of galore integer currency businesses dealing with important fiscal hardships and bankruptcy proceedings successful 2022.

Blockfi Voluntarily Petitions for Chapter 11 Bankruptcy Protection

Blockfi has officially filed for bankruptcy extortion according to a press release distributed connected Monday greeting astatine 10:17 a.m. (ET). The Chapter 11 bankruptcy filings encompass the crypto lender Blockfi and 8 of its affiliates.

The crypto steadfast insists the program is to “stabilize its concern and supply the institution with the accidental to consummate a broad restructuring transaction that maximizes worth for each clients and different stakeholders.” Blockfi has cited the FTX illness arsenic a play erstwhile the institution took steps to support Blockfi customers.

On Nov. 10, 2022, Bitcoin.com News reported that Blockfi had paused withdrawals and the steadfast besides cited FTX successful that circumstantial announcement. Months anterior it was assumed that FTX would beryllium buying Blockfi arsenic the company’s CEO said successful July that the speech had an “option to acquire” the crypto lender.

“With the illness of FTX, the Blockfi absorption squad and committee of directors instantly took enactment to support clients and the company,” the company’s fiscal advisor Mark Renzi detailed. “From inception, Blockfi has worked to positively signifier the cryptocurrency manufacture and beforehand the sector. Blockfi looks guardant to a transparent process that achieves the champion result for each clients and different stakeholders.”

Compute North, Voyager Digital, Celsius, Three Arrows Capital, and FTX person each filed for bankruptcy extortion aft dealing with fiscal problems. Numerous problems are reportedly associated with over-leveraged assets and the Terra blockchain implosion that took spot six months ago.

What bash you deliberation astir Blockfi filing for Chapter 11 bankruptcy protection? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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