Crypto firm BlockFi filed for Chapter 11 bankruptcy protection in a New Jersey bankruptcy court following the collapse of crypto giant FTX, CNBC reported Monday.
The company indicated in its filing that it has over 100,000 creditors with a range of $1 billion to $10 billion in liabilities and assets, according to CNBC. BlockFi also reportedly listed a $275 million loan to FTX US, the American branch of former crypto billionaire Sam Bankman-Fried’s fallen empire.
Bankman-Fried’s crypto exchange FTX filed for bankruptcy after it collapsed following a report by crypto site CoinDesk about the company allegedly transferring customer funds to backstop affiliated crypto trading firm Alameda Research. BlockFi previously disclosed “significant exposure” to FTX and associated entities, Reuters reported.
The company had a deal with FTX for BlockFi to be purchased at a maximum price of $240 million if FTX exercised the option, CNBC reported in July. BlockFi had set up a $400 million revolving credit facility with FTX after it suffered $80 million in losses, according to the outlet.
