BlockFi Gets Approval to Sell Assets

BlockFi Gets Approval to Sell Assets

BlockFi, the once-thriving crypto lender, has been granted court approval to sell its remaining assets after filing for bankruptcy in late November 2022. The company which had ties with FTX had previously extended BlockFi several lines of credit including a $250 million line in June 2022.

Potential buyers have until February 20 to submit their bids for BlockFi’s assets. If applicable, an auction for these assets will be held on February 28 and creditors’ representatives have until March 16 to object to the sale.

The assets up for sale could include the multitude of crypto-mining equipment that BlockFi holds. According to a Bloomberg report last week, the company was considering offloading 8,000 Bitcoin mining machines in exchange for up to $160 million in loans.

This news is yet another blow to the crypto industry as it continues to grapple with the fallout from FTX’s collapse. It is still unclear how this will affect other companies connected with FTX and what impact it will have on the wider cryptocurrency market.

BlockFi filed for bankruptcy owing more than $1 billion to three of its largest creditors, with the SEC being a major creditor. This was part of a settlement between the regulator and the firm in February 2022. Additionally, the filing revealed that BlockFi owed money to over 100,000 other creditors. The firm petitioned the bankruptcy court in December to allow users to withdraw their holdings in order to return assets back to clients through chapter 11 cases.

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