BlockFi announced on Nov. 28 that it had filed for Chapter 11 bankruptcy, pursuant to alodgeto the United States Bankruptcy Court for the District of New Jersey in the Company and its eight subsidiaries. The move comes after days of speculation about the company’s financial condition following the collapse of FTX.
followdeclaration Valued at $256.9 million, BlockFi insists it will “continue to pay workers wages and benefits without interruption.” “Develop a plan to retain key employees to ensure the company has business-critical internal resources,” and has also created an internal plan to reduce costs.
“Since there was a pause Our team has explored all the strategic options and alternatives available to us. and remain focused on our core objective of doing the best for our customers. These Chapter 11 cases will enable BlockFi to stabilize its business and provide opportunities for BlockFi to fulfill its reorganization plan that maximizes value for all stakeholders. including our valued customers.”
the company is stillTweetthat “as part of the restructuring effort We will focus on recovering all obligations owed to BlockFi to its counterparts, including FTX.”
BlockFi states in the filing that it has more than 100,000 creditors with between $1 billion and $10 billion in assets and liabilities. Valar Ventures also registered a 19% stake in the company.
BlockFi refusethat most of the assets are maintained on FTX, but acknowledge that “We have assets held at FTX and related entities, including Alameda, that owe us.”
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