BlockFi Got Court Approval To Sell Assets

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BlockFi, a defunct cryptocurrency lender, has received court approval to sell its remaining assets.

Due to its association with FTX, which had previously granted the company many lines of credit, BlockFi, which allowed customers to earn interest on their deposited cryptocurrencies, filed for bankruptcy in late November 2022.

To “bolster its balance sheet,” these included a $250 million line of credit in June 2022.

Potential suitors will have until February 20 to submit their offers for BlockFi’s assets, according to a recent filing submitted in a New Jersey bankruptcy court on January 30.

The assets will then be put up for auction, if necessary, on February 28. The deadline for creditor representatives to oppose the sale of these assets is March 16.

On December 19, BlockFi submitted its initial request to appoint impartial “appraisers, auctioneers, or other professional individuals” to handle the administration of its bankruptcy case.

The company’s extensive collection of crypto-mining equipment may be among the assets offered for sale.

Bloomberg reported last week that the business was thinking about selling 8,000 Bitcoin mining units in return for up to $160 million in loans.

It was discovered that the crypto lender owes more than $1 billion to three of its biggest creditors soon after filing for bankruptcy. In February 2022, the Securities and Exchange Commission (SEC) agreed to pay $100 million as part of a settlement.

According to BlockFi’s bankruptcy filing, the company owes money to more than 100,000 creditors in total.

The company also asked the bankruptcy court to permit customers to sell their shares in December, describing the action as “a significant step toward our aim of recovering assets to consumers through our chapter 11 proceedings.”

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