Bloomberg: BlockFi is cutting costs as it reorganizes in bankruptcy, laying off nearly 70% of its workforce

BlockFi sold its stake to cover expected bankruptcy costs, BlockFi legal counsel Mark Renzi said in a statement filed with the court on November 29, according to a Bloomberg report citing court documents. And does not intend to finance itself by taking out loans while under court protection. BlockFi has already given layoff notices to nearly 250 employees (out of a total workforce of about 370) as it moves to cut costs as part of its bankruptcy reorganization plan. BlockFi intends to reorganize rather than sell itself in bankruptcy court, but is open to any deal that maximizes the amount of money it can recover for creditors, Renzi said. How much money users ultimately get back depends largely on whether other crypto borrowers can honor their BlockFi contracts and how FTX Group goes bankrupt. After FTX collapsed, the company had "no choice" but to seek legal protection for its creditors.