JERSEY CITY, N.J.–The cascade of FTX-related failures in the crypto lending space continues.
BlockFi has shared an announcement that it has filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey. The announcement followed a Nov. 10 tweet that it had paused activity, including withdraws, and has since added that “activity continues to be paused at this time.”
In its tweet the company said it was “shocked and dismayed by the news” related to two other crypto platforms that have failed, the linked FTX and Alameda platforms.
BlockFi said it filed for bankruptcy to “stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction” for all its clients and other stakeholders.
According to the company, it has $256.9 million in cash, which will be used to provide “sufficient liquidity to support certain operations during the restructuring process.”
The company said it will focus on recovering all obligations owed to BlockFi and counterparties such as FTX.
Other Failures
In July, FTX, which crashed earlier this month and which is subject to numerous investigations, signed a deal with the option to buy BlockFi for up to $240 million. FTX has also filed Chapter 11.
Other crypto-focused companies, including Voyager and Celsius, are also currently going through bankruptcy proceedings.