BlockFi crypto lender files for bankruptcy

(ORDO NEWS) — American cryptocurrency lender BlockFi declared itself bankrupt amid the collapse of the FTX exchange. This is reported by The Wall Street Journal with reference to the press service of the company.

According to the newspaper, BlockFi and eight affiliated companies have filed Chapter 11 bankruptcy filings with the New Jersey District Court. This procedure allows you to get protection from creditors during business reorganization and debt restructuring.

The BlockFi platform has accumulated approximately $14 billion to $20 billion in cryptocurrency deposits from users and issued $7.5 billion worth of loans secured by them. The exchange actively attracted funding from FTX, which at some point considered the possibility of acquiring it.

The BlockFi press service emphasized that the company will focus on recovering all obligations from its counterparties, which include FTX and related legal entities. BlockFi currently owes over 100,000 creditors, according to Reuters.

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