Crypto lender BlockFi announced on Monday it has filed for voluntary Chapter 11 bankruptcy in an effort to restructure, days after halting all operations amid the fallout from FTX’s demise.
Bankruptcy filings show that BlockFi has about $257 million in cash on hand, which is expected to be enough to keep running some operations as the firm attempts to restructure. BlockFi’s Bermuda-based subsidiary also filed for bankruptcy.
The company has over 100,000 creditors and between $1 billion and $10 billion in assets and liabilities. BlockFi’s largest creditor is Ankura Trust Company, an indentured trustee firm that has a whopping $729 million unsecured claim.
West Realm Shires Inc., known as FTX US, has a $275 million unsecured claim. Interestingly, one of BlockFi’s creditors is the U.S. Securities and Exchange Commission (SEC). The agency is owed $30 million. In February, BlockFi had to pay $100 million to the SEC and…
