Distressed crypto firm BlockFi has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey following the implosion of putative acquirer FTX. In the filing, the company indicated that it had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion. In the filing, the company listed an outstanding $275 million loan to FTX US, the American arm of Sam Bankman-Fried’s now-bankrupt empire. Like FTX, BlockFi also has a Bahamian subsidiary. That subsidiary moved for bankruptcy in the Bahamas concurrently with the American filing. BlockFi’s bankruptcy filing shows that the company’s largest disclosed client has a balance of nearly $28 million. “BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders,” Berkeley Research Group’s Mark Renzi said in a press statement. BRG serves as BlockFi’s financial advisor. The crypto company, which offers a trading exchange and interest-bearing custodial service for cryptocurrencies, was one of many firms to face serious liquidity issues after the implosion of Three Arrows Capital.
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