BlockFi, a DeFi borrowing and lending platform, announced that it had filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey.

The company stated that it made the filing to “stabilize its business” and enable it to come up with a comprehensive restructuring process for its clients and stakeholders. Blockfi went on to state that it had USD 256.9 million in cash on hand which will be used to provide liquidity for selected operations during the restructuring process. 

According to court documents, the company owes up to USD 729 million in unsecured claims of which FTX is owed the second largest individual claim of USD 275 million. The company plans to focus on recovering all obligations owed to itself and counterparties such as FTX.

Analyst QuickTake: With this bankruptcy filing, Blockfi joins both Celsius , which filed in July , and FTX which filed a few weeks ago, in a growing list of major DeFi and cryptocurrency platforms that have gone bankrupt in the last year. Notably, Blockfi was already facing liquidity troubles nearly six months ago when it ended up signing a deal with FTX . This deal provided USD 400 million in a revolving credit facility and included an option for FTX to buy BlockFi for up to USD 240 million.