BlockFi, a popular crypto lender, filed for Chapter 11 bankruptcy on Nov. 28 in a bid to restructure. BlockFi had a $275 million unsecured claim from disgraced crypto exchange FTX that the company cannot cover as currently structured. BlockFi took to Twitter to announce its decision.

According to court filings, BlockFi has over 100,000 creditors, $1 billion in liabilities and $1 billion in assets. A news release from BlockFi states the company currently “expects that recoveries from FTX will be delayed.”

On Nov. 8th, BlockFi COO Flori Marquez tweeted that “deposits, withdrawals, trading and lending are all up and running.” On Nov. 10th BlockFi announced they were “pausing client withdrawals” as the FTX collapse was in full swing. 

The Chapter 11 filing means the BlockFi’s restructuring process will be transparent. BlockFi does have $257 million in cash on hand which should be sufficient to support the company’s restructuring.