BlockFi files for bankruptcy protection, MakerDAO rejects US$500M proposal to invest in bonds and BTC Slides

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By Jocelyn Yang, Coindesk.com

29th November 2022 – (New York) Crypto lender BlockFi filed for bankruptcy protection Monday, indicating it hoped to restructure, continuing operations in the meantime.

BlockFi has about $257 million in cash on hand and a Bermuda-based affiliate is also filing for liquidation in a similar process, according to a press release.

According to the company’s petition, BlockFi’s executives estimate the company has more than 100,000 creditors, and checked off the ranges. Executives estimate the company has between $1 billion and $10 billion in both assets and liabilities.

The company’s largest creditors include West Realm Shires Inc., the legal name for FTX US, which has a $275 million unsecured claim, and the Securities and Exchange Commission (SEC), which has a $30 million unsecured claim. The majority of the other top 50 creditors’ names were not shared.

A rocky year: BlockFi, which suspended withdrawals a few weeks ago due to the ongoing confusion about FTX’s assets, has faced a lot of setbacks. The company liquidated a large client earlier this year, and it needed a line of credit from FTX to survive.

The lender was set to raise funding at a $1 billion down round valuation in June, after raising $350 million at a $3 billion valuation in March 2021. As recently as July 2021, the company was looking to go public within the next 18 months, with a potential $500 million fundraise coming soon.

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