BlockFi files for bankruptcy, following the FTX.

ollowing the collapse of potential acquirer FTX, struggling cryptocurrency company BlockFi has applied for Chapter 11 bankruptcy protection in a New Jersey court.The company disclosed in the filing that it had more than 100,000 creditors and liabilities and assets between $1 billion and $10 billion.

The cryptocurrency company, one of many businesses that experienced severe liquidity problems following the collapse of Three Arrows Capital, provides a trading exchange and an interest-bearing custodial service for cryptocurrencies.Earlier this month, the business stopped accepting withdrawals for a “break.” At that time, the business disclosedBlockFi was one of the first companies that Sam Bankman-Fried, a former billionaire, and his FTX “rescued” in a deal that was initially estimated to be worth up to $240 million.

The agreement, which included a $250 million credit line and a purchase option, prevented BlockFi from going bankrupt at the time. Later, CNBC claimed that the deal’s true worth varied between $25 and $50 million.BlockFi has joined the ranks of companies like Voyager Digital and Celsius Networks, which both declared bankruptcy under Chapter 11 in the wake of the TerraLuna crisis in early 2022.

In the bankruptcy case involving FTX, BlockFi attorneys had already submitted a notice of appearance a few weeks earlier in the United States Bankruptcy Court for the District of Delaware.