Bankrupt crypto lender BlockFi has decided to liquidate its crypto lending platform stating that selling will not generate enough value for its creditors.
The firm, which owes its top 50 creditors more than $1.3 billion, filed its Chapter 11 restructuring plan with US Bankruptcy Court on May 12. The plan would be sent to its creditors, who would vote on it.
According to the New Jersey-based company, it decided to liquidate after concluding that a sale might not generate meaningful value for its creditors. The company claimed to have been discussing with potential buyers since January and cited the recent regulatory concerns as one of the reasons it could not get a good offer.
Earlier in the month, the firm received permission to return $297 million to certain customers as part of its bankruptcy proceedings.
BlockFi could get over $1B from litigation against other bankrupt firms
However, the bankrupt lender noted that the amount that creditors will get depends mainly on the outcome of i
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