BlockFi files for bankruptcy, as many expected, cites FTX collapse for its troubles

Published at: Nov. 28, 2022

BlockFi announced on Nov. 28 that it has filed for Chapter 11 bankruptcy. The filing in the United States Bankruptcy Court for the District of New Jersey pertains to the company and its eight subsidiaries. The move comes after several days of speculation on the company’s financial health after the collapse of FTX.

According to a statement, BlockFi has $256.9 million on hand. It has filed motions “to pay employee wages and continue employee benefits without disruption. It also seeks to “establish a Key Employee Retention Plan to ensure the company” and has created an internal plan to reduce expenses.

BlockFi International has also filed for bankruptcy with the Supreme Court of Bermuda, according to the statement.

Today, BlockFi filed voluntary cases under Chapter 11 of the U.S. Bankruptcy Code.https://t.co/adaAx6me4r

— BlockFi (@BlockFi) November 28, 2022

This is a breaking story that will be updated as it develops. 

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