• BlockFi, a bankrupt crypto lender has requested to liquidate its lending business.
• The move follows after attempts to sell the lending platform to third parties did not yield value-maximizing offers.
• BlockFi has also revealed that it is pursuing claims against FTX Group in order to increase client recoveries.
BlockFi To Liquidate Lending Platform
BlockFi, a once-prominent crypto lender, has filed for bankruptcy protection and has now requested that a court authorize the sale of its lending business as it looks to generate funds to repay creditors. Despite attempts to sell the lending platform to third parties, no value-maximizing offers were received.
Futile Attempts To Sell Lending Platform
Attempts by BlockFi to maximize values from potential buyers fell through due to regulatory developments and other conditions. As such, the firm will proceed with self-liquidation transaction whereby assets will be distributed amongst creditors according to terms laid out in their restructuring plan.
Claims Against FTX Group
In addition, BlockFi is pursuing claims against FTX Group in order for clients of the firm have an opportunity for additional recoveries from their losses during bankruptcy proceedings.
Restructuring Plan Subject To Court Approval
The restructuring plan proposed by BlockFi is still subject approval from the U.S Bankruptcy Court in Trenton, New Jersey before it can be fully implemented. Creditors and retail customers are expected t cast votes on the matter prior ro court approval being granted or refused.