Key Points:
- Bankruptcy crypto company Blockfi plans to sell some of its crypto mining assets following its bankruptcy hearing.
- The judge expressed his approval of the compensation plan for these creditors.
- The company received offers from 35 potential partners after the January 9 legal filing.
- Sam Bankman- Fried and Blockfi’s ownership of $580 million in Robinhood stock took a different turn.
Bankruptcy crypto lender BlockFi plans to sell some crypto mining assets to potential partners after a bankruptcy judge in New Jersey approves the plan.
According to Coindesk, a proposal was filed with the bankruptcy court on Monday. The firm previously received offers from 35 potential partners after filing a legal filing on January 9, according to Francis Petrie of the law firm Kirkland & Ellis.
Bidders for BlockFi’s mining assets will have until February 20 to submit an offer, with an auction a week later.
“We’ve received substantial interest in the market for certain asset packages and we expect to receive even more bids going forward,(…). Given the practical realities of the debtors’ circumstances, and the current volatility in the cryptocurrency market, we need to act quickly to preserve the value of our assets.”
After the U.S. government and the creditors’ committee withdrew their dissent, Judge Michael Kaplan expressed concurrence saying it was a viable process and was under rapid review for revocation of money to creditors.
BlockFi’s attorney told the court it would be the first in a series of potential auctions.
“I think it’s a workable and certainly an expeditious and efficient process that’s considerate,(…). We’ll all keep our fingers crossed that it produces significant results.”
After the U.S. government and a committee representing their objections, Judge Michael Kaplan said.
BlockFi’s attempts to get its hands on hundreds of millions of dollars worth of stocks in Robinhood Markets (HOOD) have taken a further turn following parallel legal proceedings in Antigua, the New Jersey court was told.
The fight for ownership of 56 million shares, with a current value of about $577 million, between the founder of the under investigation FTX, Sam Bankman-Fried, and BlockFi is still raging.
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