• Blockfi, a crypto lender, has recently filed a court document outlining its plans to liquidate the company.
• The firm has unsuccessfully attempted to sell the company and therefore decided to proceed with a self-liquidating transaction.
• The plan published in the court filing outlines how various claim holders will be treated and also mentions the cancellation of Blockfi’s existing equity interests.

Blockfi Files Court Document for Self-Liquidation Plan

Blockfi, a now-defunct crypto lender, has recently filed a court document outlining its plans to liquidate the company after failed attempts to sell it. The firm realized that selling would not be beneficial to its creditors and thus decided to take matters into their own hands by proceeding with a self-liquidating transaction wherein all assets are distributed before winding down the company.

Self-Liquidation Transaction Details

The latest filing notes that certain classes of claims could potentially see recoveries “as high as 100%”. Blockfi’s biggest hopes for recovery lie in obtaining assets owed by bankrupt entities Alameda Research and FTX. The plan 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’s existing equity interests.

Employees Crucial for Successful Transaction

In order for this transaction to move forward successfully, Blockfi emphasized that “certain crucial employees [are needed] to consummate the plan” in a statement released on Friday. Furthermore, although it appears that Blockfi is going ahead with self-liquidation plans at this time, they have still left open an option for an alternative sale transaction in case it arises as well.

Court Approval Needed

The plan requires approval from the bankruptcy court before being finalized and put into action; however no date has been set yet as far as when this could happen or what may transpire if approved or denied by said court.

Conclusion

As of right now, it is still unclear what exactly will happen with Blockfi as they continue down their current path towards self-liquidation; however it is clear that they are attempting their best efforts in ensuring creditor recoveries while keeping their options open should another more promising option arise.