Bankrupt crypto lending firm BlockFi has initiated the biding process to sell $160 million in loans backed by around 68,000 mining rigs, Bloomberg reports, citing people familiar with the matter.
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The New Jersey-based firm has reportedly already defaulted on some loans and is facing risks of being undercollateralized, the people say. In total, around $4 billion was raised through such loans in 2022 from New York Digital Investment Group, Celsius Network, Galaxy Digital and Digital Currency Group’s Foundry, the report points out.
BlockFi filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of New Jersey in November last year after the company had failed to weather the storm triggered by the FTX collapse.
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