Following the implosion of putative acquirer FTX, distressed crypto firm BlockFi has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey.
According to the filing, the company has over 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion. The company listed a $275 million loan to FTX US, the American arm of Sam Bankman-now-bankrupt Fried’s empire, in the filing. Concurrent with the American filing, a BlockFi subsidiary filed for bankruptcy in Bermuda. Bermuda, like the Bahamas, sees cryptocurrency as the future of finance. Both organisations established frameworks to specifically deal with crypto assets and digital currencies. Both the Bahamas, with the bankruptcy of FTX, and now Bermuda, with the bankruptcy of BlockFi, are facing the first significant legal tests of their crypto regulations.
