Odaily Planet Daily News Court documents show that crypto lending company BlockFi Inc. sold about $239 million in cryptocurrencies and warned nearly 250 employees that they would lose their jobs before its bankruptcy filing for Chapter 11. BlockFi consultant Mark Renzi said in a sworn statement submitted to the court on Monday that the company sold its holdings to pay for expected bankruptcy expenses and had no plans to finance itself through loans during the period of court protection. BlockFi has begun to cut costs in preparation for restructuring, including warning that two-thirds of its more than 370 employees are about to be laid off. Renzi said the company intends to reorganize in bankruptcy court rather than sell itself, but is open to any deal that will maximize creditors' returns. He said what users will eventually get depends largely on whether other cryptocurrency participants fulfill their contracts with BlockFi and what the outcome of the FTX Group bankruptcy is. Renzi said, "Despite the debtors' hopes, the full extent of the impact of FTX's bankruptcy remains to be determined." He said that after FTX's bankruptcy, the company "has no choice" but to seek court protection from creditors. Renzi believes that BlockFi is in a better position than FTX. "To date, I have not found any deficiencies in corporate controls or system integrity, and I find BlockFi's financial information to be trustworthy." As part of the filing, BlockFi also sued a business partner, alleging it failed to hand over collateral after a loan defaulted. BlockFi will make its first appearance in bankruptcy court in New Jersey at 11:30 a.m. local time on Tuesday. (Bloomberg)