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Crypto lender BlockFi filed for Chapter 11 bankruptcy protection on Monday in New Jersey, weeks following FTX’s collapse. In the filing, BlockFi said its exposure to FTX and its affiliated companies created a liquidity crisis. BlockFi said it has more than 100,000 creditors and liabilities and assets between $1B and $10B each.
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- BlockFi listed FTX as its second-largest creditor, noting it owes the defunct crypto exchange $275M from a rescue loan it received earlier this year.
- In July, following the collapse of crypto firms Terra/Luna, Three Arrows Capital, and Celsius, BlockFi signed an agreement with FTX, with an option for FTX to buy BlockFi for up to $240M.
- BlockFi also received a $400M revolving credit facility from FTX.
- Earlier this month, BlockFi halted withdrawals from its platform and said it was exploring all options with outside advisers.
- BlockFi lists Ankura Trust Company as its largest unsecured creditor.
- Ankura acts as a trustee for BlockFi’s interest-bearing crypto accounts.