Last Updated on May 16, 2023 by Bitfinsider
According to a bankruptcy court petition, BlockFi intends to liquidate its lending platform and distribute funds to creditors.
According to court documents, the impending move follows an unsuccessful attempt to raise funds to repay creditors by selling the BlockFi platform. According to the lawyers for the bankrupt crypto lender, “given recent regulatory developments, among other things, there may be a lack of meaningful value to be generated from a sale.”
“Therefore, finalizing and consummating a transaction for the BlockFi Platform would not result in an expedient and value-maximizing transaction for the benefit of the Debtors’ creditors,” BlockFi’s lawyers stated. “As a result, the Debtors are proceeding with the Self-Liquidation Transaction, in which the Debtors will distribute their assets to creditors in accordance with the terms of the Plan, followed by a Wind Down of their affairs,” the statement said.
Following the failure of FTX, BlockFi filed for bankruptcy protection in November of last year. It has since worked to sell off significant components of its corporate operations, including its bitcoin mining.
According to the petition, which was made on May 12, BlockFi might still seek “an alternative transaction providing for the sale of all, or substantially all, of the Debtors’ assets.” Before the plan can be implemented, the bankruptcy court must first approve it.
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