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- BlockFi to recover $4.5 million by selling cryptocurrency mining rigs.
- Silvergate Stock has lost over 85% of its share price in the past 1 month.
BlockFi, a globally popular crypto lender, has received approval from a bankruptcy court to sell off their self-mining rigs worth approximately $4.5 million. The rigs may be sold “free and clear of any liens, claims, interests, and encumbrances.”
As per filing from 24 March, BlockFi gained bankruptcy court New Jersey approval to sell its 6,400 crypto mining rigs worth $4.5 million. U.S. Farms & Mining Opportunity Fund LLC accepts the machine purchase deal.
According to the order, the deal is “free and clear of any liens, claims, interests, and encumbrances.” Although it is not the first cash infusion BlockFi received at the beginning of March 2023, the bankruptcy court ordered Silvergate to release $9.9 million to the crypto lender.
According to financial market data, Silvergate stock is struggling hard in the market to maintain its position. Silvergate Capital Corp stock lost its value by more than 87% last month.
Silvergate, which held multiple accounts of FTX and Alameda Research, is being probed by the U.S. Department of Justice (DoJ) fraud unit for their close involvement in the case.
Although the bank said Alameda opened an account with them in 2018, sometime before the FTX launch. It claims to have performed due diligence and ongoing monitoring at the time. A bank representative said the firm “has a comprehensive compliance and risk management program.”
BlockFi filed for chapter-11 bankruptcy in the last week of November 2022 after losing millions of dollars. The company states that FTX’s collapse is the main reason for filing for bankruptcy.
According to Crunchbase, BlockFi has invested in 12 different companies and startups and is a lead investor in another firm. The lending firm has invested in Supermojo, Elwood technologies, GamersGains Lab, Coin Metric, Hex trust, Notabene, Blockdaemon, and Jeeves.
Major Victims Post FTX Bankruptcy
Over a dozen crypto sector companies lost their funds, and three filed for bankruptcy. BlockFi was the first to follow the FTX bankruptcy path, and later on, Genesis did the same.
Genesis has been at the forefront of the cryptocurrency industry since its inception in 2013, providing institutional clients access to digital assets through its OTC trading services. Despite its success, the company faced financial difficulties as the pandemic brought about a significant downturn in the crypto market, leading to a drop in demand for its services.
Sequoia Capital has a diversified investment of $213.5 in the FTX foundation; similarly, SoftBank has also invested around $100 million during the funding raised by FTX. The recent failure of FTX, the world’s third-largest crypto exchange, has stirred the crypto market.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
