Investing

BlockFi Greenlight to Sell $4.7 Worth of Mining Rigs by Bankruptcy Court

Tim Fries

Published: March 27, 2023 3:35 am

Last Updated: March 27, 2023 11:56 am

According to a filing made available on the website of the restructuring advisor Kroll under the number 669,  BlockFi received approval to sell a part of its self-mining equipment. The crypto mining rigs are worth around $4.7 million and may be sold “free and clear of any and all liens, claims, interests, and encumbrances”.

BlockFi Allowed to Sell 6,400 Mining Rigs Worth $4.7 Million

According to a filing from Friday, March 24th, BlockFi recently received approval from the bankruptcy court in New Jersey to sell 6,400 of its cryptocurrency mining rigs worth approximately $4.7 million. U.S. Farms & Mining Opportunity Fund LLC is set to purchase the machines. According to the order, the sale is “free and clear of any and all liens, claims, interests, and encumbrances”.

This isn’t the first cash infusion BlockFi was granted in March. At the beginning of the month, the bankruptcy court ordered Silvergate Bank to immediately release $9.9 million to the cryptocurrency lender. Only days prior to the order, SIlvergate announced its own liquidation after a massive bank run and collapse in its share price as investors and depositors lost confidence.

BlockFI is one of the first victims of the contagion stemming from the collapse of FTX. The company froze withdrawals on November 10th, even before Sam Bankman-Fried’s exchange filed for bankruptcy. Several weeks later, on November 28th, BlockFi itself filed for bankruptcy becoming the first major victim of FTX’s downfall.

The Major Victims of FTX Contagion

FTX’s collapse last November sent shockwaves across the cryptocurrency industry. Multiple major platforms quickly froze withdrawals, mostly citing assets locked with FTX and Alameda Research, and some, like BlockFi, quickly followed Sam Bankman-Fried’s exchange into bankruptcy.

In early 2023, a public dispute between the Gemini Trust and Genesis, both of which had withdrawals halted in some capacity at that point, emerged. After a lengthy back and forth, it quieted down after Genesis filed for bankruptcy and entered into negotiations with Winklevoss’ company and other large creditors. Gemini, so far, appears to have dodged the bullet.

The FTX contagion also flowed into another financial crisis. Silvergate, a major crypto-friendly bank, suffered from a large-scale bank run in the wake of the collapse of SBF’s company and, by early March, announced it is closing its doors. The liquidation became a part of the still-ongoing banking crisis that saw the closing of two more US banks—Silicon Valley, and the crypto-friendly Signature Bank.

This article originally appeared on The Tokenist