Crypto lender BlockFi filed for Chapter 11 bankruptcy Monday, about two weeks after the collapse of FTX.
Investor protections for crypto are different from those for more traditional holdings, such as stocks and bonds.
Crypto falls in a gray area of law and regulation, according to legal experts. Investors must hope they can recover any funds in bankruptcy court
BlockFi offers a cryptocurrency trading exchange and interest-bearing custodial service for cryptocurrencies. The distressed company, which had said it had “significant exposure” to FTX, said Monday it has more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.