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 by way of a press launch that the corporate has voluntarily petitioned for Chapter 11 chapter safety. Blockfi is now one among many digital foreign money companies coping with vital monetary hardships and chapter proceedings in 2022.

Blockfi Voluntarily Petitions for Chapter 11 Bankruptcy Protection

Blockfi has formally filed for chapter safety in line 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 business and provide the company with the opportunity to consummate a comprehensive restructuring transaction that maximizes value for all clients and other 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 News 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 mentioned in July that the trade had an “option to acquire” the crypto lender.

“With the collapse of FTX, the Blockfi management team and board of directors immediately took action to protect clients and the company,” the corporate’s monetary advisor Mark Renzi detailed. “From inception, Blockfi has worked to positively shape the cryptocurrency industry and advance the sector. Blockfi looks forward to a transparent process that achieves the best outcome for all clients and other 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 occurred six months in the past.

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Bankruptcy, Bankruptcy announcement, Bankruptcy Submitting, Blockfi, Blockfi Bankruptcy, Blockfi CEO, Celsius, Chapter 11, compute north, crypto companies, Monetary Points, monetary issues, Monetary Troubles, ftx, Mark Renzi, Terra blockchain implosion, Three Arrows Capital, Voyager Digital

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Jamie Redman

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

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