After FTX, BlockFi also filed for bankruptcy. Cryptocurrency lender BlockFi is the latest domino to fall during the current cryptocurrency crisis. Popular cryptocurrency lender BlockFi has filed for Chapter 11 bankruptcy protection, according to an announcement on Monday, with the ongoing crypto crisis claiming yet another risk.
The lending process is at a standstill at this time. The company said it had $256.9 million in revenue. It will be used to raise enough money to support certain projects. According to corporate court documents, it has assets and liabilities estimated at $10 billion.
BlockFi has now joined Three Arrows Capital (3AC), Voyager, Celsius and FTX in the list of companies that are doing blockchain. Last year, he was affected by Terra’s Luna fall. FTX.US reached an acquisition agreement with the troubled lender in July, agreeing to buy the company for up to $240 million while providing it with a $400 million credit line.
The company suspended its withdrawal earlier this month following the acceptance of FTX’s exchange and US aid. On November 15, the Wall Street Journal reported that BlockFi is preparing to file for bankruptcy and lay off a large portion of its employees. Just a year ago, the cryptocurrency lender was seeking a $5 billion valuation.