BlockFi files for bankruptcy after FTX meltdown

BlockFi is the latest to go bankrupt in the aftermath of FTX s Meltdown.

The latest firm to collapse in the wake of the rapid downfall of FTX was filed for bankruptcy by Bloomberg -- BlockFi Inc.

BlockFi said in a statement that recovery will be delayed by FTX's bankruptcy and will use the Chapter 11 process to recover all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities. Chapter 11 bankruptcy allows a company to continue operating while working out a plan to repay creditors.

The petition filed in New Jersey lists BlockFi's assets and liabilities at between $1 billion and $10 billion. The company said it had around $257 million of cash on hand and is starting an internal plan to reduce expenses, including labor costs. The Jersey City, New Jersey-based company earlier halted withdrawals and said it was exploring all options with outside advisers because of the lack of clarity over the status of bankrupt FTX and Alameda Research.

FTX US is listed as one of its top unsecured creditors with a $275 million loan on the company s petition.

The petition says that the company's largest unsecured creditor, the Ankura Trust Company, is owed $729 million. According to its website, Ankura acts as a trustee for BlockFi's interest-bearing criptocurrency accounts.

In July BlockFi received a capital injection from a now-collapsed FTX US, and also had collateralized loans to Sam Bankman- Fried's trading firm Alameda Research.

The company is among the few to file for bankruptcy due to a slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year.

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