The contagion from the FTX crypto collapse has claimed another major scalp.
Cryptocurrency lender BlockFi has filed for Chapter 11 bankruptcy.
BlockFi claimed more than 100,000 creditors with liabilities up to $10 billion.
BlockFi was founded in 2017 and is now hoping bankruptcy protection will allow it to stabilize the company and restructure.
In a statement, the company says:
“With the collapse of FTX, the BlockFi management team and board of directors immediately took action to protect clients and the Company,”
“From inception, BlockFi has worked to positively shape the cryptocurrency industry and advance the sector.”
Days after FTX declared bankruptcy, BlockFi said it had significant exposure to FTX and its other corporate entities.
BlockFi is now the fourth crypto-focused company to seek bankruptcy protection this year, following FTX, Voyager Digital, and Celsius Network.
