On the 30th of January, BlockFi, a bankrupt crypto lender, got approval from the court to sell its remaining assets. BlockFi filed for bankruptcy in late November due to its connection with FTX, which was once the biggest crypto exchange in the world and now is nothing. After this approval from the court, BlockFi, which gave users earn interest on their deposited cryptocurrencies, will have more chances to get good and high bids for its distressed assets.
According to the latest filing made in New Jersey Bankruptcy Court, potential suitors for BlockFi’s distressed assets will have until the 20th of February 2023 to submit their bids for these distressed assets. According to the filing, an auction for the assets will then be held on the 28th of February if applicable. The filing reads that the representatives of creditors will have until the 16th of March to object to the sale of these distressed assets of a bankrupt crypto lender.
On the 19th of December 2022, BlockFi first applied to appoint independent auctioneers, appraisers, and other professional persons for the administration of its bankruptcy case. The assets that are up for sale could also include the multitude of crypto-mining equipment that the bankrupt lending company holds. According to the 23rd of January report from Bloomberg, BlockFi was considering offloading around 8,000 Bitcoin mining machines in exchange for more than $160 million in loans.
In November 2022, when BlockFi filed for bankruptcy, it emerged that the crypto lender owed more than $1 billion to three of its biggest creditors. This included the SEC, also known as the Securities and Exchange Commission, as part of a $100 million settlement with the SEC in February 2022. According to the filing, the bankrupt crypto lending firm owes money to over 100,000 creditors.