From The Verge: BlockFi has become the latest crypto firm to file for Chapter 11 bankruptcy a couple of weeks after pausing withdrawals on November 10th. The company is citing a “lack of clarity” around the circumstances of FTX, the collapsed firm going through its own bankruptcy process amid accusations of fraud and shoddy record-keeping. In a press release posted on Monday, BlockFi announced it’s filing for bankruptcy to help “stabilize its business.”
The bankruptcy filing submitted in New Jersey lists Ankura Trust Company as its largest creditor, to the tune of $729 million, followed by FTX US at $275 million. The SEC is fourth on the list, owed $30 million as a result of penalties laid down earlier this year.
BlockFi says it currently has $256.9 million in cash on hand, which is “expected to provide sufficient liquidity” to keep the company up and running while it restructures its business. The firm’s going to focus on “recovering all obligations” owed to BlockFi by its counterparties, including FTX, although it expects this process to be delayed due to FTX’s collapse.
And this afternoon, the Financial Times reports that pursuit includes suing FTX founder Sam Bankman-Fried over the 7.6 percent stake in Robinhood he owns, claiming it was pledged as collateral to guarantee payment obligations earlier this month.
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