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BlockFi files for Chapter 11 bankruptcy

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This past year has been hectic for the crypto lending platform BlockFi, and today is no different as the company shared an announcement that it filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey.
On November 10 the crypto platform shared in a tweet that it paused activity, including withdraws, and stated on Monday that “activity continues to be paused at this time.”
The bankruptcy was commenced to “stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction” for all its clients and other stakeholders.
BlockFi says it has $256.9 million in cash, which will be used to provide “sufficient liquidity to support certain operations during the restructuring process.” However, BlockFi owes a list of creditors unsecured claims up to …

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