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.
Founded in 2017, New Jersey-based BlockFi filed for Chapter 11 bankruptcy protection in November 2022 following the collapse of FTX in the same month. BlockFi has liabilities ranging between $1 billion and $10 billion….