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Crypto lender BlockFi has filed for Chapter bankruptcy protection.

The company made the filing in New Jersey, according to a release. BlockFi has US$256.9 million in cash on hand, which is expected to provide sufficient liquidity to support certain operations during the restructuring process. 

“With the collapse of FTX, the BlockFi management team and board of directors immediately took action to protect clients and the Company,” said Mark Renzi of Berkeley Research Group, the company’s financial advisor. “From inception, BlockFi has worked to positively shape the cryptocurrency industry and advance the sector. BlockFi looks forward to a transparent process that achieves the best outcome for all clients and other stakeholders.”

BlockFi announced earlier this month that it had paused withdrawals. Just days before, as Binance weighed buying FTX, BlockFi said its products were “fully functional.” Last week, BlockFi has put client loans into forbearance, according to a customer email viewed by The Block.

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