In the wake of FTX's downfall, B lock Fi Inc. filed for bankruptcy.
The Chapter 11 process will focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities, according to BlockFi. It is possible for a company to operate while working out a plan to repay their debts.
Between $1 billion and $10 billion of BlockFi's assets are listed in the petition. The company stated in the statement that it had $257 million of cash on hand, and that it was starting an internal plan to reduce expenses.
The Jersey City, New Jersey-based company halted withdrawals because of a lack of clarity over the status of FTX and Alameda Research.
The company has a $275 million loan from FTX US.
According to the petition, Ankura Trust Company is the company's largest creditor. Ankura is a Trustee for BlockFi.
In July, BlockFi received a capital injection from FTX US, as well as a loan from Sam Bankman-Fried's trading firm.
The company is the latest in a long line of firms to file for Chapter 11. Court protection was filed by Celsius Network.
The case was heard in the District of New Jersey.
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