Crypto lender BlockFi filed for bankruptcy protections Monday, days after suspending withdrawals amid the ongoing fallout from exchange FTX's bankruptcy.
The company announced it was filing for Chapter 11 bankruptcy protections, indicating it hoped to restructure, continuing operations in the meantime. According to a press release, BlockFi has about $257 million in cash on hand. A Bermuda-based affiliate is also filing for liquidation, an equivalent process.
BlockFi, which suspended withdrawals a few weeks ago due to the ongoing confusion about FTX's assets, has had a rocky year. The company liquidated a large client earlier this year, and needed a line of credit from FTX to survive earlier this year. In announcing the suspension of withdrawals, BlockFi warned clients not to deposit any funds to its wallet or interest accounts.
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 last July, the company was looking to go public within the next year and a half, with a potential $500 million fundraise coming soon.