BlockFi Inc. As it prepares to file for Chapter 11 bankruptcy, the company sold about $239 million of its own cryptocurrency and warned nearly 250 workers that they would lose their jobs as it plans to petition for Part 11 bankruptcy.
BlockFi’s advisor, Mark Renzi said in an affidavit that the company sold the positions to cover the costs of the expected bankruptcy and that the plan was not financed by loans.
Two-thirds of the lender’s employees will lose their jobs, as the lender begins to cut costs in preparation for the restructuring.
Renzi said the company intends to restructure in a court of law rather than sell itself.
The outcome of the FTX Group’s bankruptcy will affect what users get, he said.
“Despite the hopes of debtors, the full impact of the FTX bankruptcy is still to be determined,” Renzi said.
He said that the company had no choice but to seek legal protection from creditors after the bankruptcy of FTX. Renzi believes BlockFi is better than FTX.
BlockFi made its first appearance in New Jersey and officially filed for Chapter 11 bankruptcy with over 100,000 creditors, assets and liabilities ranging from $1 billion to $10 billion.
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