Blockfi Crypto Lender Files for Bankruptcy Protection to “Maximize Value for All Clients”

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company had filed for voluntary petition for Chapter 11 bankruptcy protection. Blockfi is now one of the many cryptocurrency companies dealing with major financial difficulties and bankruptcy proceedings in 2022.

Blockfi voluntary petitions for Chapter 11 bankruptcy protection
Blockfi has officially filed for bankruptcy protection according to a press release distributed Monday morning at 10:17 a.m. (ET). The Chapter 11 bankruptcy filings include crypto lender Blockfi and eight of its affiliates.

The crypto firm insists the plan is to “stabilize its business and provide the company with the opportunity to complete a comprehensive restructuring transaction that will increase value for all customers and other stakeholders.” Blockfi cited the collapse of FTX as a period in which the company took steps to protect Blockfi clients.

On November 10, 2022, Blockfi has paused withdrawals and the company also cited FTX in this specific announcement. Months ago, it was assumed that FTX would buy Blockfi as the company’s CEO said in July that the exchange had an “acquisition option” for the cryptocurrency lender.

“With the collapse of FTX, the management team and board of directors immediately took action to protect clients and the company,” explained Marc Renzi, the company’s financial advisor. “Since its inception, Blockfi has positively shaped the cryptocurrency industry and developed the sector. Blockfi looks forward to a transparent process that brings the best results for all customers and other stakeholders.”

Compute North, Voyager Digital, Celsius, Three Arrows Capital and FTX have all filed for bankruptcy protection after dealing with financial problems. Many of the problems are said to be related to the over-leveraged asset and the internal collapse of the Terra blockchain that occurred six months ago.

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