- BlockFi tried to sell the platform to a third party
- The attempt was unsuccessful
- After the liquidation of the platform, the funds will be divided among creditors
Cryptocurrency firm BlockFi applied to the bankruptcy court for permission to start liquidating their lending platform. The request came after the company tried to sell its platform in order to pay off creditors.
Such a move was rather expected, since an attempt to raise funds to pay off accounts payable by selling the BlockFi platform failed.
Lawyers for the bankrupt creditor said that “given recent changes in the regulatory framework, the sale of the business will not provide significant value to its creditors.”
BlockFi’s lawyers stated that the completion of the platform deal would not contribute to reaching an optimal agreement in the interests of creditors. In this regard, the debtors begin the process of self-liquidation, in which their assets will be distributed among the creditors in accordance with the terms of the plan.
BlockFi filed for bankruptcy protection last November following the collapse of FTX. Since then, the company has been trying to sell its property. A few days ago, there were reports that almost $300 million will be returned to users of BlockFi custodial wallets without any queues and participation in the bankruptcy estate.
