BlockFi files for Chapter 11 bankruptcy protection

Cryptocurrency lender BlockFi is submitting for Chapter 11 chapter safety because the fallout from the collapse of crypto change FTX spreads outward.

In a Monday submitting for chapter safety in New Jersey, the place it’s based mostly, BlockFi claimed greater than 100,000 collectors, with BlockFi’s liabilities starting from US$1 billion to $10 billion.

BlockFi Inc. stated chapter safety will enable it to stabilize the corporate and restructure. That restructuring will embody recovering all obligations that it’s owed by its counterparties, together with FTX and related company entities. BlockFi stated it anticipates recoveries from FTX will likely be delayed.

FTX filed for chapter safety earlier this month. At the time, BlockFi introduced on Twitter that it wasn’t in a position to do business as standard and was pausing shopper withdrawals on account of FTX’s implosion.

BlockFi has $256.9 million in money readily available, which it expects will present sufficient cushion to help some operations in the course of the restructuring.