BlockFills, an embattled crypto lender, has filed for Chapter 11 bankruptcy protection in the United States. The filing comes weeks after the platform suspended all deposits and withdrawals, citing difficult crypto market conditions. The bankruptcy marks a major failure in the centralized lending sector.
The collapse follows significant losses at the platform. Last month, BlockFills suspended customer access to funds after sustaining a $75 million loss, which also triggered the departure of CEO Nicholas Hammer. The lender's troubles underscore ongoing stress in the crypto lending market and risks faced by centralized finance platforms.
Sources: BlockFills
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