BlockFi Inc. Files for Bankruptcy After Owing $1 Billion to Creditors

Inc. owes more than $1 billion to three of its largest creditors, including $30 million it has yet to pay the U.S. Securities and Exchange Commission as part of the $100 million settlement that was announced in February, according to the company’s bankruptcy filing.

BlockFi owes its 50 largest creditors $1.3 billion, according to its bankruptcy filing, and has between $1 billion and $10 billion in assets and liabilities.

bankruptcy petitions require only that companies check a box next to ranges, but the filing did say that BlockFi has more than 100,000 creditors.

liabilities include $729 million owed to Ankura Trust Company, the trustee through which the company runs its BlockFi Interest Accounts as part of its agreement with the SEC to update and register the product.

suspended registration for the interest-bearing accounts in February, then launched BlockFi Yield earlier this month after notifying the SEC in a filing.

By Evey Lovelace

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