{"id":20982,"date":"2023-05-16T10:29:07","date_gmt":"2023-05-16T10:29:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/blockfi-announces-self-liquidation-plan-after-failed-attempts-to-sell-company-bitcoin-news\/"},"modified":"2023-05-16T10:29:07","modified_gmt":"2023-05-16T10:29:07","slug":"blockfi-announces-self-liquidation-plan-after-failed-attempts-to-sell-company-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/blockfi-announces-self-liquidation-plan-after-failed-attempts-to-sell-company-bitcoin-news\/","title":{"rendered":"Blockfi Announces Self-Liquidation Plan After Failed Attempts to Sell Company \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The now-defunct crypto lender Blockfi has recently filed a court document outlining its plans to liquidate the company. The firm has come to the realization that selling the company would not be beneficial to its creditors. As a result, Blockfi has decided to take matters into its own hands and proceed with a self-liquidating transaction. Once the assets are distributed, the company will be wound down.<\/strong><\/p>\n

Blockfi Explores Self-Liquidation and Alternative Transaction Options<\/h2>\n

\u200b\u200bBlockfi has recently updated<\/a> the community with a notice regarding its latest disclosure statement with the bankruptcy court. The update reveals that the crypto lender has made the decision to proceed with a self-liquidation transaction after several unsuccessful attempts to sell the business. With 660,000 client accounts, the top 50 creditors are owed $1.3 billion. However, there is a glimmer of hope for some, as the latest filing notes that certain classes of claims could potentially see recoveries \u201cas high as 100%.\u201d<\/p>\n

\u201cThe debtors are proceeding with the self-liquidation transaction whereby the debtors will distribute their assets to creditors in accordance with the terms of the plan, followed by a wind-down of their affairs,\u201d the court document published on kroll.com details. Blockfi\u2019s biggest hopes for recovery lie in obtaining assets owed by the bankrupt entities Alameda Research and FTX. \u201cWhile recoveries will be based on a number of factors, the largest driver of higher recoveries are our claims against Alameda and FTX,\u201d Blockfi said in a tweet<\/a> on Friday.<\/p>\n

The plan published in the court filing outlines how various claim holders, including secured tax claims, account holder claims, general unsecured claims, and others, will be treated, while also mentioning the cancellation of Blockfi\u2019s existing equity interests. Blockfi\u2019s plan to proceed with a self-liquidating transaction is not yet set in stone, as it requires full approval from the bankruptcy court. The crypto lender has also noted that \u201ccertain crucial employees [are needed] to consummate the plan.\u201d Meanwhile, a sale of the company is not completely off the table either, as the latest filing suggests that \u201can alternative transaction\u201d is possible.<\/p>\n

According to a court document, Blockfi has emphasized the importance of its employees in the company\u2019s self-liquidation plan. The crypto lender has stated that the Blockfi platform was \u201cdeveloped in-house, [and] is written in a unique and esoteric programming language\u201d that outsiders would have a difficult time understanding. Without the needed staff, \u201cthe debtors do not believe that the plan is feasible,\u201d the court document discloses.<\/p>\n

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Alameda Research<\/a>, alternative transaction<\/a>, Bankruptcy Court<\/a>, Blockfi<\/a>, complex financial situation<\/a>, creditors<\/a>, Crypto lender<\/a>, Employees<\/a>, financial obligations<\/a>, ftx<\/a>, recoveries<\/a>, self-liquidation<\/a><\/div>\n<\/div>\n

What do you think about Blockfi\u2019s latest statement and its attempt to self-liquidate? Share your thoughts in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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