Crypto Lender Blockfi Files for Bankruptcy Protection to ‘Maximize Value for All Clients’ – Bitcoin News


On Nov. 28, 2022, the crypto lender Blockfi knowledgeable the general public through a press launch that the corporate has voluntarily petitioned for Chapter 11 chapter safety. Blockfi is now one in all many digital foreign money companies coping with important monetary hardships and chapter proceedings in 2022.

Blockfi Voluntarily Petitions for Chapter 11 Chapter Safety

Blockfi has formally filed for chapter safety in accordance with a press release distributed on Monday morning at 10:17 a.m. (ET). The Chapter 11 chapter filings embody the crypto lender Blockfi and eight of its associates.

The crypto agency insists the plan is to “stabilize its enterprise and supply the corporate with the chance to consummate a complete restructuring transaction that maximizes worth for all purchasers and different stakeholders.” Blockfi has cited the FTX collapse as a interval when the corporate took steps to guard Blockfi prospects.

On Nov. 10, 2022, Bitcoin.com Information reported that Blockfi had paused withdrawals and the agency additionally cited FTX in that particular announcement. Months prior it was assumed that FTX can be shopping for Blockfi as the corporate’s CEO said in July that the trade had an “choice to accumulate” the crypto lender.

“With the collapse of FTX, the Blockfi administration crew and board of administrators instantly took motion to guard purchasers and the corporate,” the corporate’s monetary advisor Mark Renzi detailed. “From inception, Blockfi has labored to positively form the cryptocurrency trade and advance the sector. Blockfi seems ahead to a clear course of that achieves the perfect end result for all purchasers and different stakeholders.”

Compute North, Voyager Digital, Celsius, Three Arrows Capital, and FTX have all filed for chapter safety after coping with monetary issues. Quite a few issues are reportedly related to over-leveraged belongings and the Terra blockchain implosion that befell six months in the past.

Tags on this story
Bankruptcy, Bankruptcy announcement, Bankruptcy Filing, Blockfi, Blockfi Bankruptcy, Blockfi CEO, Celsius, Chapter 11, compute north, crypto businesses, Financial Issues, financial problems, Financial Troubles, ftx, Mark Renzi, Terra blockchain implosion, Three Arrows Capital, Voyager Digital

What do you consider Blockfi submitting for Chapter 11 chapter safety? Tell us what you consider this topic within the feedback part under.

Jamie Redman

Jamie Redman is the Information Lead at Bitcoin.com Information and a monetary tech journalist dwelling in Florida. Redman has been an lively member of the cryptocurrency neighborhood since 2011. He has a ardour for Bitcoin, open-source code, and decentralized functions. Since September 2015, Redman has written greater than 6,000 articles for Bitcoin.com Information concerning the disruptive protocols rising at this time.

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