BlockFi Files for Chapter 11
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An editor at Coincrop
29 Nov 2022 | 2 min read
lockFi, seeking to recover all obligations owed by counterparties like FTX, filed for Chapter 11 bankruptcy protection. The rippling effects of the FTX downturn can be seen in BlockFi's filing for bankruptcy protection.
On Nov. 28, BlockFi announced that is has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of New Jersey. BlockFi will attempt to recover any debts owed to it by its counterparties, which include FTX.
According to BlockFi's recent bankruptcy filing, they have over 100,000 creditors, $1-10 billion in liabilities, and $1-10 billion in assets. BlockFi stated that the cash on hand will more than cover the "restructuring" process.
The company's announcement stated that the bankruptcy filing is a way to help stabilize business and serve all clients better.
According to a filing, the SEC is one of many creditors owed $30 million by the crypto lender.
JonathanAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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