There has been a new development in the crypto currency crisis, which has deepened with the collapse of FTX, and BlockFi announced that it has filed for Chapter 11 bankruptcy. A source from the company said in a statement that BlockFi will file for Chapter 11 bankruptcy protection later today.
The source said that the cryptocurrency lender also laid off a large portion of its staff. Mark Renzi of Berkeley Research Group, the company’s financial advisor, said of the latest development: “With the collapse of FTX, the BlockFi management team and board took immediate action to protect customers and the company.”
Since its inception, the company has worked to positively shape and advance the cryptocurrency industry. The company looks forward to a transparent process that will achieve the best outcome for all customers and other stakeholders.