BlockFi plans to liquidate its own lending platform after a failed deal to sell it. This is reported The Wall Street Journal.
The firm filed in the United States Bankruptcy Court in Trenton, New Jersey, under Chapter 11, which provides for reorganization. The business recovery plan will be sent out to all creditors for voting, including more than 100,000 retail customers.
After interacting with potential buyers, the company came to the conclusion that the sale of the platform would not bring it sufficient benefits.
BlockFi said that the amount of damages to customers depends largely on the outcome of pending proceedings against the collapsed crypto exchange FTX and Alameda Research, as well as the bankrupt hedge fund Three Arrows Capital.
BlockFi owes nearly $1.3 billion to its top 50 creditors, according to the filing.
On November 11, 2022, BlockFi suspended withdrawals, citing the FTX crisis and Alameda Research. A few days earlier, the founder of the platform, Flory Marquez, assured that all the company’s products are workable, and the business does not depend on the firms of Sam Bankman-Fried.
On November 28, BlockFi and eight subsidiaries filed for Chapter 11 bankruptcy.
Recall that in May the court allowed the company to return $ 300 million to customers, which are stored in custodial accounts. The authorities did not recognize this amount as the property of the platform.
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BlockFi plans to liquidate its own lending platform after a failed deal to sell it. This is reported The Wall Street Journal.
The firm filed in the United States Bankruptcy Court in Trenton, New Jersey, under Chapter 11, which provides for reorganization. The business recovery plan will be sent out to all creditors for voting, including more than 100,000 retail customers.
After interacting with potential buyers, the company came to the conclusion that the sale of the platform would not bring it sufficient benefits.
BlockFi said that the amount of damages to customers depends largely on the outcome of pending proceedings against the collapsed crypto exchange FTX and Alameda Research, as well as the bankrupt hedge fund Three Arrows Capital.
BlockFi owes nearly $1.3 billion to its top 50 creditors, according to the filing.
On November 11, 2022, BlockFi suspended withdrawals, citing the FTX crisis and Alameda Research. A few days earlier, the founder of the platform, Flory Marquez, assured that all the company’s products are workable, and the business does not depend on the firms of Sam Bankman-Fried.
On November 28, BlockFi and eight subsidiaries filed for Chapter 11 bankruptcy.
Recall that in May the court allowed the company to return $ 300 million to customers, which are stored in custodial accounts. The authorities did not recognize this amount as the property of the platform.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!