Crypto lending platform BlockFi filed for Chapter 11 bankruptcy on November 28.
According to a press release, BlockFi and eight subsidiaries have filed a filing with the New Jersey Bankruptcy Court.
The statement reads:
“As part of its restructuring efforts, the company will focus on recovering all liabilities to BlockFi from its counterparties, including FTX.”
BlockFi International Ltd., which is registered in Bermuda, filed a petition with the Supreme Court for the appointment of temporary liquidators.
The platform has said:
“In order to ensure a smooth transition to Chapter 11, BlockFi is filing a series of conventional motions with the court to allow the company to continue in business. These Day One petitions include requests to pay salaries to employees and continue to pay benefits without disruption.”
BlockFi intends to develop a key employee retention plan to ensure that resources are kept for critical functions.