Cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection on Monday along with eight affiliates as contagion from the collapse of cryptocurrency exchange FTX spreads across the industry.
- BlockFi filed for bankruptcy on Nov.28 along with eight affiliates.
- Earlier in the month, BlockFi had to pause withdrawals after the FTX collapse.
- The platform has started laying off employees.
Earlier this month, the New Jersey-based platform paused withdrawals after announcing that it was preparing for bankruptcy due to its "significant exposure" to the bankrupt crypto exchange FTX. FTX bailed out BlockFi this year with a $400 million revolving credit facility and an option to buy it for up to $240 million. Now the crypto lender's CEO has resigned, and it is laying off much of its staff.