BlockFi Declares Bankruptcy After FTX Collapse

Crypto lender BlockFi has filed for Chapter 11 bankruptcy, becoming the latest casualty of the FTX collapse. According to a company press release, BlockFi "commenced voluntary cases under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey " in order to "stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction that maximizes value for all clients and other stakeholders."

Full Video Transcript Below:

J.D. DURKIN: Alright, here's a look at what to watch at TheStreet today. Embattled crypto firm BlockFi is now the latest casualty as a result of the ongoing FTX fiasco. The crypto lender filing for chapter eleven bankruptcy just this morning, just a few short weeks after the FTX collapse. BlockFi was one of the many firms financially entangled with FTX, after the now defunct company had agreed to provide BlockFi with a $400 million credit line. BlockFi was forced to halt withdrawals in the wake of this collapse, and according to bankruptcy filings, the company has more than 100,000 creditors with liabilities in assets ranging from one billion dollars to ten billion dollars. The company's most significant creditors include FTX U.S. and most notably the SEC itself, which has a $30 million unsecured claim with BlockFi. The company is also planning for significant layoffs. That'll do it for us here today. Stick with TheStreet for more on this and all of the major market stories that matter to you.