BlockFi Officially Declares Bankruptcy And Sues FTX, BlackRock Loses $24 Million

BlockFi and several of its affiliates have filed for Chapter 11 bankruptcy protection. In related news, BlockFi also filed a lawsuit against Sam Bankman-Fried to seize his $575 million stake in Robinhood.

With reference to certain loan documents, it was revealed that Robinhood shares held by FTX pledged to utilize BlockFi as collateral. This development happened shortly after BlockFi had filed for bankruptcy.

The company reportedly has more than $256 million in cash on hand, which should be enough to support certain operations during the restructuring process.

BlockFi has over 100,000 creditors and assets and liabilities ranging from $1 billion to $10 billion. Ankura Trust Company, LLC is among the major creditors named in the petition.

As stated in the petition, the company&39s unsecured claim is worth approximately $729 million. West Realm Shires, also known as FTX.US, and the SEC have unsecured claims in the amount of $275 million and $30 million, respectively.

Mark Renzi, the company&39s financial advisor, stated that following the failure of FTX, the BlockFi management team and board of directors acted quickly to protect both the company and its clients.

BlockFi previously admitted to having significant exposure to FTX and its associated corporate entities, including obligations owed to BlockFi. They additionally have assets on the platform and an undrawn line of credit with FTX.

Financial difficulties at FTX are rapidly spreading to other crypto companies as well. Gemini and Genesis are two notable firms that have been impacted by the bankrupt cryptocurrency exchange. Larry Fink, CEO of BlackRock, also confirmed that the asset manager had lost $24 million which it had invested in FTX.