Crypto Lender Blockfi Files for Bankruptcy Protection to ‘Maximize Value for All Clients’

On Nov. 28, 2022, the crypto lender Blockfi knowledgeable the general public through a press launch that the corporate has voluntarily petitioned for Chapter 11 chapter safety. Blockfi is now certainly one of many digital foreign money companies coping with vital monetary hardships and chapter proceedings in 2022.

Blockfi Voluntarily Petitions for Chapter 11 Bankruptcy Protection

Blockfi has formally filed for chapter safety based on a press release distributed on Monday morning at 10:17 a.m. (ET). The Chapter 11 chapter filings embody the crypto lender Blockfi and eight of its associates.

The crypto agency insists the plan is to “stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction that maximizes value for all clients and other stakeholders.” Blockfi has cited the FTX collapse as a interval when the corporate took steps to guard Blockfi clients.

On Nov. 10, 2022, Bitcoin.com News reported that Blockfi had paused withdrawals and the agency additionally cited FTX in that particular announcement. Months prior it was assumed that FTX could be shopping for Blockfi as the corporate’s CEO said in July that the trade had an “option to acquire” the crypto lender.

“With the collapse of FTX, the Blockfi management team and board of directors immediately took action to protect clients and the company,” the corporate’s monetary advisor Mark Renzi detailed. “From inception, Blockfi has worked to positively shape the cryptocurrency industry and advance the sector. Blockfi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders.”

Compute North, Voyager Digital, Celsius, Three Arrows Capital, and FTX have all filed for chapter safety after coping with monetary issues. Numerous issues are reportedly related to over-leveraged belongings and the Terra blockchain implosion that passed off six months in the past.

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