![Avatar photo](https://en.ethereumworldnews.com/wp-content/uploads/2022/03/IMG_6129-50x50.jpg"></p><p>Summary:</p><ul><li>Crypto lender BlockFi declared bankruptcy on Monday after exposure to FTX.</li><li>The company had some 100,000 creditors and around $256 million in cash when chapter 11 was filed.</li><li>FTX backed the lender with a $250 million loan following Three Arrows Capital exposure.</li></ul><div class=)
BlockFi declares bankruptcy, files Chapter 11
Cryptocurrency lender BlockFi filed for chapter 11 bankruptcy on Monday following exposure to troubled crypto exchange FTX, the exchange founded by Sam Bankman-Fried.
BlockFi held $256.9 million in cash when it filed for bankruptcy. The company also has around $1 billion in assets and liabilities alike. Per details of the filing, the lender boasts over 100,000 creditors including FTX US and the Securities and Exchange (SEC).
The crypto lender reported $275 million in unsecured claims tied to FTX US. Notably, Sam Bankman-Fried’s exchange loaned $250 million to BlockFi back in June. At the time, BlockFi faced liquidity concerns after exposure to insolvent crypto hedge fund Three Arrows Capital (3AC).
Also, the lender owes $30 million to the SEC as part of a settlement agreement from February 2022. The largest creditor was Ankura Trust Company LLC with a $729 million claim. The crypto lender joined other centralized crypto entities like 3AC, Celsius, FTX, and Voyager in bankruptcy.
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