BlockFi is trying to liquidate lending after a failed sale attempt

BlockFi intends to liquidate its lending platform and return money to creditors, according to a bankruptcy court.

The anticipated move follows a failed attempt to raise funds to repay creditors by selling the BlockFi platform, court documents said. Lawyers for the bankrupt cryptocurrency lender wrote that “among other things, given recent regulatory developments, there may be a lack of meaningful value that can be generated from a sale.”

“Therefore, closing and completing a transaction for the BlockFi platform would not result in an expedient and value-maximizing transaction for the benefit of the debtor’s creditors,” BlockFi’s lawyers wrote. “Accordingly, the debtors will proceed with the self-liquidation transaction whereby the debtors will distribute their assets to the creditors in accordance with the terms of the plan, followed by a liquidation of their businesses.”

BlockFi filed for bankruptcy protection last November following the collapse of FTX. It has since worked to sell valuable parts of its business, including its cryptocurrency mining.

The filing, dated May 12, suggested that BlockFi could still “pursue an alternative transaction that provides for the sale of all or substantially all of the debtor’s assets.” The bankruptcy court must now approve the plan before it goes ahead.

The Wall Street Journal first reported the news about the liquidation plan.

The full court file can be found below:

Blockfi archiving Through MichaelPatrickMcSweeney on Scribd

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