Cryptocurrency lender BlockFi goes bankrupt in aftermath of FTX downfall

BlockFi said in a statement that it will use the Chapter 11 process to "focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities"

BlockFi, Crypto Lender
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Photo: Bloomberg

Kevin Simauchi and Hannah Miller | Bloomberg
BlockFi Inc. filed for bankruptcy, the latest crypto firm to collapse in the wake of crypto exchange FTX’s rapid downfall. 
 
BlockFi said in a statement Monday that it will use the Chapter 11 process to “focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities,” adding that recoveries are likely to be delayed by FTX’s own bankruptcy. Chapter 11 bankruptcy allows a company to continue operating while working out a plan to repay creditors. 

The petition, filed in New Jersey, lists BlockFi’s assets and liabilities at between $1 billion and $10 billion each.

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First Published: Nov 28 2022 | 10:52 PM IST

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