It’s now official: the cryptocurrency lending service BlockFi and its subsidiaries are starting voluntary bankruptcy proceedings in the United States. Here’s another collateral damage from the collapse of FTX.
It’s over for BlockFi
Rumors have been circulating for a few days, it’s now official: the BlockFi group has just started a voluntary bankruptcy procedure by placing themselves under the protection of Chapter 11 of the law of the United States:
Today, BlockFi filed voluntary cases under Chapter 11 of the US Bankruptcy Code.https://t.co/adaAx6me4r
—BlockFi (@BlockFi) November 28, 2022
This procedure concerns BlockFi Inc. as well as the 8 other subsidiaries associates of the group and also provides that the majority of employees are laid off. The bankruptcy filing mentions at least 100,000 creditors and between 1 and 10 billion dollars under management.
As a reminder, on November 11, a few hours before the announcement of the bankruptcy of the FTX exchange, the lending and returns company specializing in cryptos had announced the suspension of withdrawals for its users. Indeed, BlockFi would have contracted a loan of 250 million dollars in FTTthe FTX token whose value has since plummeted 95%.
The statement tells us that the company will focus on reimbursing all of its creditors, including FTX Group. Until further notice, withdrawals are still pending but BlockFi points out that it holds $256 million which will be used to relaunch certain features.
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Source: press release, bankruptcy filing
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