Crypto lender BlockFi files for Chapter 11 bankruptcy amid FTX fallout

By neelum November 29, 2022

Crypto lender BlockFi

BlockFi, a cryptocurrency lender, has filed for Chapter 11 bankruptcy.

Soon after, FTX agreed to provide a $400 million credit line to BlockFi.

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BlockFi looks forward to a transparent process that results in the best possible outcome for all clients and stakeholders.”

Furthermore, BlockFi claims to have $256.9 million in cash on hand, which should be enough to maintain “certain activities during the reorganization process,” such as paying staff paychecks and continuing benefits.

According to the regulator, the business allegedly made “false and deceptive” assertions about the degree of risk in its lending operations and loan portfolio.

neelum

Neelum Malik is an Editor at Bestkoditips experiencing SEO strategies and knowledge about online educational platforms. Prior to her work as an Editor, Neelum worked in IT across a number of industries, including banking, retail, and software.