Cryptocurrency lender BlockFi plans to liquidate its lending platform after failing to sell it, The Wall Street Journal has reported.
The company disclosed the Chapter 11 restructuring plan in a document filed with the US Bankruptcy Court in Trenton, New Jersey, on Friday.
The business recovery plan will be sent to all creditors for a vote, including more than 100,000 retail customers.
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After interacting with potential buyers, the company has concluded that selling the platform would not bring it enough profit.
BlockFi has reported the amount customers will recover depends largely on the outcome of pending proceedings against FTX and Alameda Research, as well as bankrupt hedge fund Three Arrows Capital.
BlockFi owes nearly $1.3 billion to its 50 major creditors.