Blockfi announces self-liquidation plan after failed attempts to sell the company

Company has Blockfi Recently, it notified its community regarding its latest disclosure statement to the bankruptcy court, and the new update reveals that the cryptocurrency lending company has made a decision to proceed with a self-liquidation transaction, after several failed attempts to sell the company.

Also read: Silvergate Bank announces voluntary liquidation as crypto industry woes continue

The company has more than 660,000 client accounts, and the 50 largest creditors owe $1.3 billion. However, there is a glimmer of hope for some that certain categories of claims may see recoveries of up to 100%.

On the other hand, the highest hopes Blockfi In recovery, it’s getting the owed assets of bankrupt companies Alameda Research AndFTX FTX.

In a tweet on Friday, Blockify said:

“Although the recovery will depend on a number of factors, the biggest driver of a larger recovery is our claims against Alameda AndFTX FTX.”

The plan, published in the court filing, explains how various claims will be dealt with, including secured tax claims, account holder claims, general unsecured claims, and others, while also indicating the cancellation of Blockify’s existing property rights.

While a plan has not yet been developed to move forward with the self-liquidation deal, because it requires full approval from the bankruptcy court, in addition to selling the company not completely off the table either, with the possibility of an alternative deal.

Also read: The Bahamas Supreme Court approves the accreditation of two experts to liquidate FTX

mention that blockfi She had stressed the importance of her staff to the company’s self-liquidation plan, stating that it was developed in-house, that it was programmed in a unique language, which outsiders would find difficult to understand, and that without the necessary staff, the debtors did not believe the plan would be feasible.