BlockFi to Join the League of Bankrupt Companies on Jan. 11

Amid the prevailing harsh market conditions, digital asset lender BlockFi has disclosed its resolve to file assets and liabilities for bankruptcy cases on Jan. 11 according to a latest report.

BlockFi expects to file both its Schedules of Assets and Liabilities and its Statement of Financial Affairs with the Court on January 11, 2023.

— BlockFi (@BlockFi) January 9, 2023

The crypto company affirmed that no members of the BlockFi management team had withdrawn any digital assets from the platform since October. The platform maintained that payment made to other parties prior to the bankruptcy filing will be disclosed.

However, BlockFi restated its resolve to maximize values for all clients as well as stakeholders in its next sojourn as it relates to the chapter 11 bankruptcy case.

In the same vein, the crypto lending platform had filed a presentation for its stakeholders encompassing plans for future court filings and a synopsis of the bankruptcy proceedings.

It was reported that the company had reached out to 106 potential buyers after unravelling its first bankruptcy hearing in November and will ask for the court’s approval concerning the bidding process on Jan. 30.

Meanwhile, the platform revealed that it plans to file its assets and liabilities alongside a comprehensive statement of financial affairs on Jan. 11. BlockFi equally looks forward to advancing its discussion with the UCC, U.S. Trustee, and other relevant stakeholders.

Increasing Leagues of Bankrupt Companies

There is no gainsaying that BlockFi is neither the first nor will it be the last company to go bankrupt amid the bear market crisis. A similar crypto lender Celsius Network filed for Chapter 11 bankruptcy in July, 022, due to financial insolvency. 

However, the catastrophe that befell FTX exchange has not been helpful to the crypto market as the contagion has affected many crypto firms.

For instance, BlockFi’s financial insolvency was reportedly triggered by the FTX collapse, which prompted the crypto lender platform to sue Sam Bankman-Fried’s company FTX.

In the same vein, Genesis Global Capital was not spared from the contagion. Although it quickly embarked on a restructuring plan in order to avert filing for bankruptcy.