Skip to content
CryptoNewsBlockFiFTX

Crypto Lender BlockFi Declares Chapter 11 Bankruptcy

Table of Contents

US-based crypto lender BlockFi has become the latest casualty in the FTX meltdown, with the company filing for Chapter 11 bankruptcy along with eight of its affiliates.

In an emailed statement to its users on Monday, BlockFi said that the Chapter 11 cases will “enable BlockFi to stabilize the business and provide BlockFi with the opportunity to consummate a reorganization plan that maximizes value for all stakeholders, including our valued clients”.

It also mentioned that it will “continue to work on recovering all obligations owed to BlockFi as promptly as practicable”.

Earlier this month, the platform paused customer withdrawals in the wake of FTX’s collapse, telling users in an email “We can no longer operate our business as usual.”

It also said that it had “significant exposure” in the form of obligations owed to BlockFi by FTX-linked hedge fund Alameda, assets on the FTX platform, and an undrawn credit line from FTX.

More to follow…

Latest

Blast Mainnet Launches, Boosting Ethereum L2

Blast Mainnet Launches, Boosting Ethereum L2

Now the seventh-largest blockchain and the second-largest Ethereum Layer 2 by total value deposited, Blast demonstrates the growing interest and demand for scalable and efficient solutions within the Ethereum ecosystem.