BlockFi has filed for liquidation of its lending business in court

ChainCatcher message, according to a recent bankruptcy court filing, BlockFi has requested the bankruptcy court to allow it to begin liquidating its lending platform and distributing funds to creditors. The document shows that the company previously attempted to raise funds and repay creditors by selling its lending platform but was unsuccessful.

BlockFi's lawyers stated that, given recent regulatory developments, the significance of selling the lending platform is very limited. Therefore, BlockFi is engaging in a self-liquidation transaction and will distribute its assets to creditors according to the terms of the liquidation plan.

Last November, BlockFi filed for bankruptcy protection after the FTX collapse. Since then, the company has been trying to sell valuable parts of its business, including its crypto mining operations. Currently, BlockFi may still seek "alternative transactions to sell all or a substantial portion of its assets." The plan must be approved by the bankruptcy court to proceed. (source link)