U.S. cryptocurrency lender BlockFi said on Monday it had filed for Chapter 11 bankruptcy protection along with eight of its affiliates, in the latest casualty since FTX collapsed earlier this month triggering instability in the crypto market.
Exchange had previously paused withdrawals and acknowledged it was heavily exposed to FTX
U.S. cryptocurrency lender BlockFi said on Monday it had filed for Chapter 11 bankruptcy protection along with eight of its affiliates, in the latest casualty since FTX collapsed earlier this month triggering instability in the crypto market.
New Jersey-based BlockFi had earlier paused withdrawals from its platform and acknowledged it had “significant exposure” to FTX, and its associated entities.
In paperwork, the company lists more than 100,000 creditors, and says it has liabilities of between $1 billion and $10 billion.
Filing also show the company has $256.9 million in cash on hand, which it expects will provide enough cushion to support some operations during the restructuring.
The move comes more than a week after FTX filed for U.S. bankruptcy protection and its founder Sam Bankman-Fried resigned as chief executive.
In July, FTX had signed a deal with BlockFi to provide the firm with a $400 million revolving credit facility and an option to buy it for up to $240 million.
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