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BlockFi declare Chapter 11 personal bankruptcy

Cryptocurrency lending institution and monetary services firm BlockFi applied for Chapter 11 personal bankruptcy Monday, following the near collapse of FTX.

The business, which noted over 100,000 lenders, suspended withdrawals previously this month, stating it was “not able to operate business as usual”. The liquidity concerns came following the implosion of FTX, which, in June, had actually consented to “rescue” BlockFi with a $400 million credit limit with a choice to buy the business.

That contract let BlockFi prevent a personal bankruptcy filing at the time, however when FTX collapsed previously this month, BlockFi stated it had “significant exposure” to the business and “like the rest of the world, found out about [the] situation through Twitter.”

BlockFi is the most recent crypto business to submit personal bankruptcy in a progressively bleak crypto winter season. Voyager Digital and Celsius Networks both submitted Chapter 11 previously this year.

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Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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