BlockFi To Liquidate Lending Platform
Blockfi, a bankrupt cryptocurrency lender, has asked a judge to approve the sale of its lending operation in order to raise money to pay off creditors.
After fruitless attempts to sell the lending platform to a third party, the decision was made. BlockFi acknowledged that it had not received offers from prospective buyers that would have maximised value.
In a letter submitted on Friday to the Trenton, New Jersey, branch of the U.S. Bankruptcy Court, the bankrupt lender revealed the Chapter 11 reorganisation plan. The court must still approve the plan before the firm can ask creditors and retail consumers for their ballots.
A U.S. judge recently decided, however, that the assets in BlockFi’s interest-bearing accounts do not belong to the users who are attempting to reclaim them.
(With inputs from Shikha Singh)
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