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BlockFi, the latest crypto company to file Chapter 11 bankruptcy, has done so just a few weeks after halting withdrawals on November 10.
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According to the company, there needs to be more clarity around the circumstances surrounding FTX.
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This bankrupt firm is going through its bankruptcy. There are also allegations of fraud and poor record-keeping.
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BlockFi posted a press release on Monday stating that it is filing for bankruptcy to "stabilize" its business.
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New Jersey's bankruptcy filing lists Ankura Trust Company, listed as the company's largest creditor, at $729 million. FTX USA, at $275 million, is next.
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SEC is the fourth listed creditor, with $30 million owing as a result of earlier in the year.
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BlockFi claims it has $256.9 million of cash available. This is sufficient liquidity to keep the company afloat while it restructures.
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Although it expects that FTX's collapse will delay this process, the firm is going to concentrate on "recovering all obligations" owed by BlockFi to its counterparts.
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