© Reuters. FILE PHOTO: Representations of cryptocurrencies plunge into water on this illustration taken, Could 23, 2022. REUTERS/Dado Ruvic/Illustration/File Photograph
(Reuters) -U.S. cryptocurrency lender BlockFi stated on Monday it had filed for Chapter 11 chapter safety together with eight of its associates, within the newest casualty since FTX collapsed earlier this month triggering instability within the crypto market.
New Jersey-based BlockFi had earlier paused withdrawals from its platform and acknowledged it had “important publicity” to FTX, and its related entities.
The transfer comes greater than per week after FTX filed for U.S. chapter safety and its founder Sam Bankman-Fried resigned as chief govt.
In July, FTX had signed a take care of BlockFi to offer the agency with a $400 million revolving credit score facility and an choice to purchase it for as much as $240 million.