After the collapse of FTX, BlockFi is the latest name in the crypto industry to collapse as it filed for bankruptcy protection.
On November 28, BlockFi, the crypto lender that has been in trouble since mid-2022, filed for Chapter 11 bankruptcy protection in a US court. This means that during the bankruptcy process, the company can still operate normally.
According to the company’s bankruptcy petition, BlockFi has over 100,000 creditors and between $1 billion and $10 billion in assets and liabilities.
Several large creditors are named in the petition. The largest is Ankura Trust Company, which has an unsecured claim worth approximately $729 million. FTX US and the Securities and Exchange Commission are the next named creditors, with unsecured claims of $275 million and $30 million.
BlockFi declared earlier this month that withdrawals had been halted. Most recently, the crypto lender was accused of using FTX funds to pay SEC fines.
The company is the latest name to join the long list of crypto companies that collapsed during the crypto winter and had to file for Chapter 11 bankruptcy protection this 2022, including Three Arrows Capital, Voyager, Celsius, and Sam Bankman-Fried‘s empire FTX.
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