BlockFi plans to sell loans backed by Bitcoin miners

The bankrupt crypto lender has announced the sale of its $160 million in loans, with the last day for bids to be submitted by bidders on January 24.

Loans taken from BlockFi backed by 68,000 mining machines. The sale procedure was launched last year. However, some of the loans have already defaulted and appear to be under-collateralized and difficult for the buyer to recover.

The problem is that the mining equipment used as collateral is likely to be worth less than the amount of loans.. However, the sale of debt is, in all likelihood, the only thing that BlockFi can do right now.

At the end of November, the company said that it had more than 100,000 cars in pledge and about $ 257 million that it managed to bail out by selling crypto assets.

On Jan. 23, the company urged a bankruptcy court to approve employee bonuses to slow the tide of layoffs.. HR director Megan Crowell added that despite a turbulent time in the industry, opportunities for exiting workers have not dried up: “The war for talent is still going on.”

At the end of December, BlockFi asked the court to unlock user accounts and their assets stored in the service’s blocked crypto wallets so that they can be withdrawn.