The Crypto lending platform BlockFi announced the launch of bankruptcy proceedings under the 11th section of the Bankruptcy Code, which will allow it to reorganize and stabilize the business. BlockFi has $256,9 million in the account, and this would help the company get enough liquidity to support certain operations in the restructuring process.

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BlockFi International Ltd., based in Jersey City, New Jersey and registered in Bermuda, is a lending organization aimed primarily at small investors, offering them free money in minutes without credit checks, as well as opening account for high interest deposits in cryptocurrency. According to blockFi, it had over 450,000 private clients in the last two years.

Bankruptcy filing for BlockFi International Ltd. and eight affiliated organizations filed in the US Bankruptcy Court for the District of New Jersey. Now, all operations on the platform are suspended. The company plans on getting into the market to take the entire company’s contracts, including that of FTX and its related entities.

BlockFi entered into a deal with FTX in June, and agreed to give the company a credit line worth $400 million. According to the bankruptcy filing, BlockFi subsequently borrowed $275 million from a subsidiary of FTX.

BlockFi has indicated in a court document that it’s got a whopping 100,000 creditors. BlockFis most expensive debt to ankura trust is 729 million dollars. BlockFi owes $275 million to West Realm Shires (FTX US) and $30 million to the US Securities and Exchange Commission.

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