Crypto lending company BlockFi and its eight subsidiaries have officially filed for bankruptcy reorganization in the New Jersey Bankruptcy Court, and customer claims will be handled through Chapter 11 of the Bankruptcy Code. BlockFi will focus on recovering all debt owed to BlockFi by its counterparties, including FTX and related corporate entities. As the recent collapse of FTX and its subsequent bankruptcy proceedings are still ongoing, the Company expects that the recovery of FTX will be delayed.​

In addition, documents show that BlockFi has more than 100,000 creditors, and its estimated assets and estimated liabilities are in the range of US$1 billion to US$10 billion. BlockFi still holds US$256.9 million in cash, and platform services will continue to be suspended. (Business Wire)