BlockFi declared bankruptcy
2022.11.28 11:03
BlockFi declared bankruptcy
Budrigannews.com – BlockFi, a cryptocurrency lender based in the United States, announced on Monday that it and eight affiliates had filed for Chapter 11 bankruptcy protection in a New Jersey court.
This is the latest casualty since the collapse of FTX earlier this month caused instability in the cryptocurrency market.
BlockFi, with headquarters in New Jersey, stated in a court filing that it owes money to more than 100,000 creditors.With $275 million owing on a loan that was extended earlier this year, it listed crypto exchange FTX as its second-largest creditor.
Ankura Trust, which represents stressed creditors, is the company’s largest creditor and owes $729 million.
BlockFi halted withdrawals from its platform.
The move comes just a few weeks after FTX’s founder, Sam Bankman-Fried, resigned as CEO and filed for bankruptcy protection in the United States.
Following BlockFi’s price collapse earlier this year, FTX had agreed to provide the crypto lender with a $400 million revolving credit facility and the option to purchase it for up to $240 million in July.
