Cryptocurrency-based financial services company BlockFi, which has filed for bankruptcy before US authorities, has been cleared by the bankruptcy court to sell its crypto mining equipment and other physical assets in order to raise around $5 million dollars.

The assets will be sold at an auction in which there was a lot of interest for the physical equipment. Part of the assets will be acquired by an entity called US Farms.

It should be noted that the firm received authorization at the end of January to organize the auction. At the time, BlockFi’s lawyer claimed that they were interested in doing so as soon as possible, to take advantage of the current interest among mining companies and services to get hold of their high-end equipment.

Although the estimated price of the devices in his possession was around $160 million, the associated value has dropped dramatically over the last year due to many of these being ASIC machines. It is important to mention that the US managed a rather incisive policy on cryptomining activities, promoting the use of renewable energies and trying to mitigate the carbon footprint they generate.

BlockFi continues with its bankruptcy process to gather sufficient assets and honor commitments made to creditors and users who were affected by the insolvency it went through in 2022. In January of this year, the court granted permission to BlockFi to use part of its capital and make more competitive salary proposals to its workers.

K. Tovar

Source: Diariobitcoin

(Reference image source: file)

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La entrada BlockFi will sell its mining equipment apareció primero en Bitfinance.

BlockFi, the bankrupt cryptocurrency lender, has begun receiving offers for its mining business assets and expects more before its February 20 deadline.

According to BlockFi’s lawyer, Francis Petrie, the company wants to get offers as soon as possible to take advantage of current market conditions.

The auction will take place about a week later, and any proposed deals will be submitted for approval in March. BlockFi filed for bankruptcy in November with plans to sell or reorganize its business to repay its creditors.

Unsold assets will be reorganized as part of a proposal to exit bankruptcy. The company was a major financier of bitcoin miners who have been hit by low cryptocurrency prices and high electricity costs, through loans backed by mining equipment.

Profitability has increased in recent months due to lower energy costs. The bankruptcy of bitcoin miners and lenders has created a growing market for distressed assets.

Companies like Bitdeer and Grayscale have set up funds and entities to invest in distressed Bitcoin mining hardware.

K. Tovar

Source: Diariobitcoin

(Reference image source: file)

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La entrada BlockFi starts selling mining assets apareció primero en Bitfinance.

Crypto asset lender BlockFi, which has filed for bankruptcy, has filed a lawsuit against Emergent Fidelity Technologies, the investment vehicle of Sam Bankman-Fried, the founder and former CEO of platform FTX, which also filed for bankruptcy in November.

In its claim, BlockFi demands compliance with the terms of the pledge agreement, entered into between the firms on November 9, two days before FTX declared bankruptcy, and to recover the collaterals guarded by Emergent.

In this sense, it states that, under said agreement, Emergent guaranteed “absolutely, unconditionally and irrevocably” the payment obligations of the borrower using as collateral “certain common shares” whose delivery BlockFi has required Emergent in accordance with the terms of the agreement.

The lender registered this week the voluntary application to seek protection from Chapter 11 of the Bankruptcy Law during the restructuring of its activity, thus becoming the latest victim in the sector after the collapse of FTX, which declared bankruptcy on past November 11.

Specifically, BlockFi and eight of its subsidiaries have begun Chapter 11 suspension of payments proceedings before the Bankruptcy Court for the District of New Jersey in order to stabilize their business and have the opportunity to carry out a comprehensive restructuring. to maximize value for customers and other interested parties.

The platform indicated that it will focus on recovering all obligations owed by its counterparties, including FTX itself and other associated entities, although it assumes that due to its recent collapse, recoveries will be delayed.

K.Tovar

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Source: BBC

La entrada BlockFi demands guarantees from FTX apareció primero en Bitfinance.

The New Jersey Bureau of Securities ordered cryptocurrency trading and lending platform BlockFi to stop accepting new BlockFi Interest Accounts (BIA). This was confirmed by the executive director of BlockFi, Zac Prince, through his account at the social network Twitter.

Zac Prince stated: “On Monday night, BlockFi received an order from the New Jersey Office of Securities regarding the operations of the BlockFi Interest Account (BIA) in the state of New Jersey.”

The move came less than a month away from BlockFi notifying that its BIA product would support UNI, the governance token linked to the popular DEX Uniswap. However, the regulatory authority did not indicate which assets offered in BIA constitute securities.

According to the CEO, the order requires BlockFi to stop accepting new BlockFi Interest Account (BIA) customers residing in New Jersey as of July 22, 2021. He said services for existing customers were fully functional.

He also expressed that BlockFi’s BIA services are completely legal and not securities. “BlockFi engages in an ongoing dialogue with regulators to help them understand our products, which we believe are legal and appropriate for cryptocurrency market participants.”

The manager showed through the social network Twitter his disagreement with the regulatory office when he indicated: “BIA is not a security and, therefore, we do not agree with the action of the New Jersey Office of Securities.”

M.Rodríguez

Source: criptoeconomy

La entrada New Jersey Bureau of Securities orders BlockFi not to accept new clients apareció primero en Bitfinance.

The DeFi Nexus Mutual hedging protocol will be the proposal promoted by the project, which has included a list of eligible centralized exchanges who will be shielded against any event that disrupts the security of the platforms.

The protocol will allow users trading on Binance, Kraken, Coinbase and Gemini to now purchase protection in the event of a hack or extended downtime for withdrawals.

The program launched in late 2020 included centralized lenders such as: BlockFi, Celsius, Nexo, Ledn and Hodlnaut. Currently, to be able to enjoy coverage, it is necessary for the user to become a member of the Nexus mutual and undergo verification.

It is important to mention that Nexus is not an insurance provider, the difference is that the insurance has contractually defined clauses that establish how and when a claim must be fulfilled.

The decision to pay claims at Nexus Mutual is solely at the discretion of the members and participants. While in practice this may not be a problem, extreme cases could put the system to the test.

K. Villarroel

Source: cointelegraph

La entrada DeFi protocol strengthens security against cyber attacks apareció primero en Bitfinance.