Cryptocurrency lending company BlockFi is reportedly set to file for Chapter 11 bankruptcy proceedings by implementing a restructuring to stabilize the business and maximize value.
BlockFi acted as such after the 'bloody' crypto market situation due to the FTX crisis suffered a drastic fall and subsequently declared bankruptcy.
The company said in the United States (US) Bankruptcy Court for the District of New Jersey that it had filed for 100,000 creditors while liabilities and assets dwindled to $10 billion.
He added that BlockFi's bankruptcy filing was a result of FTX stopping production and creating significant problems related to liquidity issues.
In fact, Binance not being able to fulfill its promise to acquire FTX also caused the crypto market to experience massive destruction.
It is also understood that consultations between BlocFi and restructuring professionals were made shortly after FTX including Alameda Research and 130 other firms announced bankruptcy proceedings.
That streak, other companies may file for bankruptcy as well if there is continued negative market sentiment and the FTX crisis impacting crypto prices or retail investors.
However, several regulatory bodies around the world have acted to tighten crypto-related policies so that the bitter events that befell FTX will not be repeated in the future.
