BlockFi turns to C Street Advisory Group amid bankruptcy filing

The crypto company’s Chapter 11 filing follows FTX’s recent collapse.

BlockFi filed for Chapter 11 bankruptcy protection this week. (Image credit: Getty Images).

NEW YORK: C Street Advisory Group is supporting crypto company BlockFi as it attempts to stabilize through Chapter 11 bankruptcy protection. 

“C Street Advisory Group is serving as strategic restructuring and communications advisor to the company,” the consultancy’s head of strategic comms, Jackie Rubin, said via email.

BlockFi said in a statement on Monday that, as part of its restructuring efforts, it “will focus on recovering all obligations owed to BlockFi by its counterparties, including FTX and associated corporate entities.”

Due to FTX’s collapse, the statement continued, BlockFi expects recoveries from FTX to be delayed. 

This month, FTX said that it had shockingly filed for Chapter 11 bankruptcy protection. (PRWeek spoke to agencies about how they are finding silver linings in the cryptocurrency exchange’s disaster). 

In June, former FTX CEO Sam Bankman-Fried provided BlockFi with a $250 million loan to alleviate financial insecurity. The deal contained the option for FTX to purchase BlockFi one year later. 

BlockFi also revealed that it has initiated an internal plan to “considerably reduce expenses, including labor costs.” The firm has paused all platform activity, and it will use $256.9 million in cash to support “certain operations” during the restructuring period. 

Berkeley Research Group is serving as financial advisor to BlockFi, while Haynes and Boone, Kirkland & Ellis and Cole Schotz are providing legal counsel. 

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in