2024 Annual Summary and 2025 New Year Outlook

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BlockFi filed for Chapter 11 bankruptcy protection on Monday morning in the District of New Jersey after pausing withdrawals last week.

BlockFi had planned to use a $240 million loan from FTX to stay afloat, but that deal fell through when FTX filed for bankruptcy last Friday.

BlockFi’s Chapter 11 filing includes eight other affiliated debtors, BlockFi Lending, BlockFi Trading, BlockFi Digital Currency Fund, BlockFi Structured Products, BlockFi International, BlockFi Payments, BlockFi Rewards and BlockFi Credit Card.

The filing shows that BlockFi has an estimated 100,000 creditors, with liabilities ranging from $1 billion to $10 billion. Its assets are valued between $256.9 million and $564.2 million.

BlockFi’s largest creditor is Ankura Trust Company, the trustee overseeing the Chapter 11 bankruptcy proceedings of FTX, which is owed $275 million.

BlockFi had paused withdrawals on Nov. 10 as the crypto exchange faced liquidity problems following the collapse of FTX. The exchange had earlier applied for a revolving credit facility from FTX, which was intended to help BlockFi avoid bankruptcy.

However, FTX’s filing for Chapter 11 bankruptcy last Friday put that plan in jeopardy, and on Monday morning BlockFi confirmed that it had filed for bankruptcy protection.

“Despite our efforts to engage constructively with our regulators and counterparties, BlockFi was ultimately unable to overcome the challenges presented by the FTX collapse,” BlockFi said in a statement.

“This filing will enable BlockFi to stabilize operations and pursue a comprehensive restructuring that maximizes value for all stakeholders, including our valued clients.”

BlockFi said that its BlockFi Card will continue to operate normally, and that cardholders will be able to continue using their cards as usual.

The filing also includes BlockFi’s BlockFi Card, which is a crypto rewards credit card. The card was launched in partnership with Evolve Bank & Trust, a member FDIC, and is not directly affected by BlockFi’s Chapter 11 filing.

BlockFi customers will be able to access their BlockFi Card accounts and use their cards as usual, without interruption.

BlockFi’s Chapter 11 filing is the latest in a string of high-profile crypto bankruptcies this year, which have included FTX, Celsius Network, Voyager Digital and Three Arrows Capital.