2022-11-29
BlockFi announced on Nov. 28 that the company had filed for Chapter 11 bankruptcy, according to a filing with the U.S. Bankruptcy Court for the District of New Jersey on the company and its eight subsidiaries. The move comes after days of speculation about the company's financial position following the FTX’s collapse.
ref. BlockFi on Twitter
According to the statement, BlockFi is valued at $256.9 million. It insisted it would "continue to pay employee wages and employee benefits without interruption." Will also try. "Create a plan to retain key employees to ensure that the company has internal resources that are business-critical," he said, adding that he has created an internal plan to reduce costs.
“Since the pause, our team has explored every strategic option and alternative available to us and has remained laser-focused on our primary objective of doing the best we can for our clients. These Chapter 11 cases will enable BlockFi to stabilize the business and provide BlockFi with the opportunity to consummate a reorganization plan that maximizes value for all stakeholders, including our valued clients.”
The company also tweeted, “As part of our restructuring efforts, we will focus on recovering all obligations owed to BlockFi by counterparties, including FTX.”
BlockFi stated in the document that it has more than 100,000 creditors, with assets and liabilities between $1 billion and $10 billion. Moreover, Valar Ventures also registers ownership of a 19% stake in the company.
BlockFi denied that most of the assets were maintained on FTX, but accepted that "we have assets held at FTX and related entities, including Alameda, that owe us."
Source link: Business Wire // cointelegraph.com
