The news had been circulating in the crypto industry for days: BlockFi is insolvent and had to file for Chapter 11.
On 10 November, in the midst of FTX’s collapse, they had declared that withdrawals were still active, but as early as the next day they announced their indefinite suspension.
On 14 November they declared that they had sufficient liquidity to try to keep going, but as early as 23 November they withdrew this statement.
Yesterday the official announcement of the Chapter 11 application
Crypto news: BlockFi files for Chapter 11
The so-called Chapter 11 is literally the 11th chapter of the US bankruptcy law. It is actually the main provision of that law.
Its specific feature is to allow companies that use it to kick off a restructuring process despite filing for bankruptcy.
In other words, filing for Chapter 11 means that the company is insolvent and de facto declares bankruptcy because it no longer has sufficient resources to repay all of its debts as they fall du
We współpracy z: https://en.cryptonomist.ch/2022/11/29/crypto-news-expected-blockfi-bankruptcy/
