Cryptocurrency lender BlockFi is filing for Chapter 11 bankruptcy protection as the fallout from the collapse of crypto exchange FTX spreads outward.
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In a Monday filing for bankruptcy protection in New Jersey, where it is based, BlockFi claimed more than 100,000 creditors, with BlockFi’s liabilities ranging from $1 billion to $10 billion.
BlockFi Inc. said bankruptcy protection will allow it to stabilize the company and restructure. That restructuring will include recovering all obligations that it is owed by its counterparties, including FTX and associated corporate entities. BlockFi said it anticipates recoveries from FTX will be delayed.
FTX filed for bankruptcy protection earlier this month. At the time, BlockFi announced on Twitter that it wasn’t able to do business as usual and was pausing client withdrawals as a result of FTX’s implosion.
BlockFi has $256.9 million in cash on hand, which it expects will provide enough cushion to support some operations during the restructuring.
Silly millennials playing with covid stimulus money on robinhood and buying hot air that you can’t explain. This is all that and thensome