Another former cryptocurrency giant has filed for Chapter 11 bankruptcy protection in the United States.
Thus, BlockFi has followed the example of companies like Celsius and Three Arrows Capital.
- The cryptocurrency lender’s troubles began as the bear market intensified earlier this year, especially after the Terra collapse.
- There seemed to be a lifeboat thrown by FTX a few months down the road as the exchange provided a $400 million loan to BlockFi and had the option to purchase the company for up to $240 million later on.
- However, the once SBF-led giant crashed spectacularly earlier this month, which led to a new wave of problems.
- Some reports emerged claiming that BlockFi was exploring filing for bankruptcy, but company reps refuted them at first.
- Yet, the crypto lender has indeed filed for Chapter 11 bankruptcy protection in a New Jersey court, as reported by CNBC.
- The filing reads that BlockFi had over 100,000 creditors and its liabilities were somewhere between $1 billion and $10 billion.
“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US.” – a company spokesman had previously said.
- This year has already seen its fair share of bankruptcy filings in the crypto industry. Celsius was among the first, followed by 3AC, Voyager, and more.