That’s the conclusion the company’s management came to after unsuccessful attempts to get its platform sold since January of this year.
Founded in 2017, BlockFi provided credit services in the cryptocurrency market and successfully raised funds from major investors such as ConsenSys Ventures and Galaxy Digital.
It has expanded its services to include cryptocurrency-backed loans, compound interest accounts and a zero-commission trading platform;
However, regulatory issues arose in 2021, when several states said BlockFi’s interest-bearing accounts were unregistered securities.
The situation worsened in 2022, after the collapse of FTX. BlockFi eventually filed for bankruptcy in November 2022, leaving more than 100,000 creditors in limbo.
In April, BlockFi was able to get another delay in court in filing a final version of the company’s reorganization plan and repayment of debts to investors until the middle of next month.
In February, BlockFi won approval from a New Jersey district court to sell the mining equipment to recover some of the money from aggrieved creditors.