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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…