TechFlow reported, according to a recent bankruptcy court filing, BlockFi has requested the bankruptcy court's permission to begin liquidating its lending platform and distribute funds to creditors. The document shows that the company previously attempted to raise funds and repay creditors by selling its lending platform, but was unsuccessful.
BlockFi’s lawyers stated that, given recent regulatory developments, selling the lending platform holds very limited significance. As such, BlockFi is proceeding with a self-liquidation transaction and will distribute its assets to creditors in accordance with the terms of the liquidation plan.
In November last year, BlockFi filed for bankruptcy protection following the collapse of FTX. Since then, the company has been attempting to sell valuable parts of its business, including its cryptocurrency mining operations. BlockFi may still pursue "alternative transactions involving the sale of all or substantially all of its assets." The plan must be approved by the bankruptcy court before it can move forward.
