01-31-2023 icon

Bankrupt BlockFi Gets Approval to Sell Remaining Assets

By Lucy Adegbe

Bankrupt lending protocol, BlockFi has earned court approval to sell its remaining assets.

As a lending and borrowing platform, BlockFi, which let users earn interest on their deposited cryptocurrencies. 

In November 2022, the platform filed for bankruptcy due to its connection with FTX, which had previously extended the firm several lines of credit.  These included a $250 million line of credit in June 2022, earmarked to “bolster its balance sheet.”

New filing made in a New Jersey Bankruptcy Court on January 30, notes that potential suitors will have until February 20 to submit their bids for BlockFi’s assets. 

An auction for the assets will then be held on February 28. Creditor’s representatives have until March 16 to object to the sale of these assets.

BlockFi first applied to appoint independent “appraisers, auctioneers, or other professional persons” for the administration of its bankruptcy case on December 19.

The assets up for sale could potentially include the multitude of crypto-mining equipment that the company holds. 

According to a report from Bloomberg last week, the company was considering offloading 8,000 Bitcoin mining machines, in exchange for up to $160 million in loans.