BlockFi Files for Immediate Chapter 11 Bankruptcy

Per Decrypt

BlockFi files for Chapter 11 bankruptcy protection as it lays off a large portion of its staff. The platform initially halted withdrawals on Nov 11, when FTX filed for bankruptcy.

The crypto lending platform took a $400 million credit line from FTX US and laid out terms for a potential acquisition by FTX after its competitor, Celsius, froze withdrawals in July.

BlockFi also had exposure to bad debt from Celsius, saying they experienced an $80 million loss from the Three Arrows Capital forced liquidation.