{"id":70700,"date":"2022-11-28T18:11:25","date_gmt":"2022-11-28T16:11:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70700"},"modified":"2025-09-08T03:48:23","modified_gmt":"2025-09-08T00:48:23","slug":"blockfi-files-for-chapter-11-bankruptcy-protection","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/blockfi-files-for-chapter-11-bankruptcy-protection\/","title":{"rendered":"BlockFi files for Chapter 11 bankruptcy protection"},"content":{"rendered":"<p>The crypto lending platform BlockFi plans to file for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code on Monday, November 28. Decrypt reports, citing a source.<\/p>\n<div class=\\\"wp-block-text-wrappers-update-2 article_update\\\"><time class=\\\"gtb_text-wrappers_update_time\\\">November 28, 2022 | 18:36<\/time><span class=\\\"gtb_text-wrappers_update_head\\\">Update: <\/span><\/p>\n<p>According to the <a href=\\\"https:\/\/www.businesswire.com\/news\/home\/20221128005451\/en\/\\\">press release<\/a>, BlockFi and eight subsidiary entities filed the corresponding petition in the United States Bankruptcy Court for the District of New Jersey. <\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cAs part of restructuring efforts, the company will focus on recovering all obligations owed to BlockFi by its counterparties, including FTX,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>The Bermuda-registered BlockFi International Ltd. has filed a petition with the High Court to appoint provisional liquidators.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cTo ensure a smooth transition to Chapter 11, BlockFi is filing a number of ordinary first-day motions that will allow the company to continue operating. These first-day motions include requests to pay employees\u2019 salaries and continue benefits without disruption,\u201d the platform&#8217;s representatives noted.<\/p>\n<\/blockquote>\n<p>BlockFi intends to develop a plan to retain key staff to ensure resources are preserved to perform critical functions.<\/p>\n<blockquote class=\\\"wp-block-quote is-style-default is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThe company also today initiated an internal plan to significantly reduce expenses, including payroll costs,\u201d added BlockFi.<\/p>\n<\/blockquote>\n<p>According to the platform, it has $256.9 million in liquidity, which will \u201cprovide sufficient liquidity to support certain operations in the course of restructuring.\u201d<\/p>\n<div class=\\\"wp-block-text-wrappers-update-2 article_update\\\"><time class=\\\"gtb_text-wrappers_update_time\\\">November 28, 2022 | 19:20<\/time><span class=\\\"gtb_text-wrappers_update_head\\\">Update: <\/span><\/p>\n<p>According to BlockFi&#8217;s petition, it has more than 100,000 creditors. The assets and liabilities of the company are estimated to be in the range of $1 billion to $10 billion.<\/p>\n<figure class=\\\"wp-block-image size-full\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"740\\\" height=\\\"365\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2022-11-28-v-18.57.24.png\\\" alt=\\\"BlockFi files for bankruptcy\\\" class=\\\"wp-image-191979\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2022-11-28-v-18.57.24.png 740w, https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2022-11-28-v-18.57.24-300x148.png 300w\\\" sizes=\\\"auto, (max-width: 740px) 100vw, 740px\\\" \/><figcaption>Data: BlockFi&#8217;s petition.<\/figcaption><\/figure>\n<p>The major creditors include Ankura Trust Company, LLC (unsecured obligations of about $729 million), <a href=\\\"https:\/\/www.bloomberg.com\/profile\/company\/1911524D:US\\\">West Realm Shires Inc.<\/a> ($275 million) and the U.S. Securities and Exchange Commission ($30 million). The names of the others are not disclosed.<\/p>\n<figure class=\\\"wp-block-image size-full\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"725\\\" height=\\\"364\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2022-11-28-v-19.06.15.png\\\" alt=\\\"BlockFi files for bankruptcy\\\" class=\\\"wp-image-191980\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2022-11-28-v-19.06.15.png 725w, https:\/\/u1f987.com\/wp-content\/uploads\/Snimok-ekrana-2022-11-28-v-19.06.15-300x151.png 300w\\\" sizes=\\\"auto, (max-width: 725px) 100vw, 725px\\\" \/><figcaption>Data: BlockFi&#8217;s petition.<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<p>According to a source familiar with the matter, BlockFi will lay off a large portion of its staff.<\/p>\n<p>On November 8, founder Flori Marquez said that all of the company&#8217;s products were fully functional, and the business <a href=\"https:\/\/u1f987.com\/en\/news\/crypto-industry-participants-distance-themselves-from-ftx-and-alameda-research\">does not depend on the Sam Bankman-Fried exchange<\/a>.<\/p>\n<p>However on November 11 BlockFi <a href=\"https:\/\/u1f987.com\/en\/news\/blockfi-halts-withdrawals-amid-ftx-crisis\">stated<\/a> that it would not be able to operate its business normally and would limit operations due to lack of clarity regarding the status of FTX and Alameda Research. The platform paused withdrawals and urged users to refrain from depositing.<\/p>\n<p>The same day FTX Group <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">filed for bankruptcy<\/a>, and Bankman-Fried stepped down as CEO.<\/p>\n<p>On November 14, BlockFi <a href=\\\"https:\/\/twitter.com\/BlockFi\/status\/1592211934002167811\\\">denied<\/a> reports that most of its assets were held at FTX. At the same time, the company acknowledged that it has a credit line, <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-to-provide-blockfi-with-a-250-million-revolving-credit-facility\">provided<\/a> by the exchange&#8217;s American subsidiary, as well as outstanding obligations from Alameda Research. <\/p>\n<p>On November 16, The Wall Street Journal reported that <a href=\"https:\/\/u1f987.com\/en\/news\/wsj-blockfi-to-file-for-chapter-11-bankruptcy\">BlockFi was preparing to file for bankruptcy<\/a>.<\/p>\n<p>Read ForkLog\u2019s bitcoin news in our <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Telegram<\/a> \u2014 crypto news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto lending platform BlockFi plans to file for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code on Monday, November 28. Decrypt reports, citing a source.<\/p>\n","protected":false},"author":1,"featured_media":70701,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1436],"class_list":["post-70700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockfi"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=70700"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70700\/revisions"}],"predecessor-version":[{"id":70702,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70700\/revisions\/70702"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/70701"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=70700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=70700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=70700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}