Bankrupt Crypto Lending Platform Opts for Liquidation

Bankrupt Crypto Lending Platform Opts for Liquidation
Figurines with smartphones and computers in front of the BlockFi logo in this illustration, on Nov. 28, 2022. Dado Ruvic/Illustration/Reuters
Naveen Athrappully
Updated:
0:00

Bankrupt crypto lender BlockFi has decided to liquidate its cryptocurrency lending platform in a bid to repay its more than 100,000 creditors.

In a company filing on May 12, BlockFi claimed that liquidation would be the best option for creditors. According to the company, the amount of funds clients can recover from the liquidation largely depends on the outcome of pending litigation the company has against its commercial counterparties. “Collectively, the success or failure of this litigation will make a difference of in excess of $1 billion to clients,” the filing said. BlockFi is estimated to owe almost $1.3 billion to its top 50 creditors.
Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.
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