The latest victim of market volatility since FTX’s collapse earlier this month, US cryptocurrency lending Platform BlockFi said on Monday that it has filed for Chapter 11 bankruptcy protection in a New Jersey court along with eight affiliates.
New Jersey-based BlockFi said in a court petition that it owed money to more than 100,000 debtors.
With $275 million outstanding on a loan made earlier this year, it named cryptocurrency exchange FTX as its second-largest creditor.
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Ankura Trust, which represents creditors in difficult situations, is the company’s biggest creditor and is owed $729 million.
In the past, BlockFi has halted withdrawals from its system and admitted it had “substantial exposure” to FTX and its related companies.
The action was taken a few weeks after Sam Bankman-Fried, the company’s founder resigned as CEO and FTX sought bankruptcy relief in the United States.
Following a price crash that rocked the crypto lender earlier in the year, BlockFi and FTX reached an agreement in July to provide the latter with a $400 million revolving credit facility and an option to purchase it for up to $240 million.