The filing indicates that the firm could have up to $10 billion in liabilities, as contagion from FTX spreads.
BlockFi has filed for chapter 11 bankruptcy, according to a press release.
The lending platform is the latest victim of contagion within the industry that originated with the collapse of the cryptocurrency exchange FTX.
According to the filing, BlockFi has over 100,000 estimated creditors and an estimated $1-10 billion in liabilities. The filing confirms that the firm has $256.9 million cash in hand.
A released statement on BlockFi’s Twitter explained: “As part of our restructuring efforts, we will focus on recovering all obligations owed to BlockFi by counterparties, including FTX.
Acting in the best interest of our clients is our top focus and continues to guide our path forward. Chapter 11 is a transparent process and we will continue to communicate with our clients to ensure they hear directly from us.”
This filing is yet another example of lenders facing insolvenc
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