NEW DELHI: Leading Crypto finance company BlockFi has filed for bankruptcy to help "stabilise its business," as investors are yet to recover from the declind of crypto exchange FTX.
BlockFi and 8 of its associates has filed for Chapter 11 bankruptcy Code in the US Bankruptcy Court for the District of New Jersey to provide the company with the "opportunity to effectuate a thorough restructuring transaction that maximises value for all clients and other stakeholders,"
"With the falls of FTX, the BlockFi management team and board of directors swiftly took measures to protect consumers and the Company", said Mark Renzi of Berkeley Research Group, the Company's financial advisor.
"BlockFi has fought to promote the cryptocurrency industry and positively shape it since its start. BlockFi anticipates a transparent procedure that results in the greatest result for all clients and other stakeholders," Renzi said in a statement.
The company said that platform activity carries on to be paused at this time.
BlockFi now has USD 256.9 million in cash, which, according to the company, will likely be enough liquidity to support some activities during the restructuring process. Decrypt said that the organisation also intends to let go of "a big chunk" of its staff.