BlockFi Liquidates $160M in Loans, Could Trigger Crypto Price Selloff

• BlockFi is liquidating approximately $160 million in loans backed by 68,000 Bitcoin mining machines.
• Crypto lawyer Harrison Dell suggested that this is just the start of the asset sales from BlockFi and other crypto firms in Chapter 11 bankruptcy.
• The increased liquidations could increase the overall sell pressure in Bitcoin and crypto prices.

Troubled crypto firm BlockFi is in hot water as the company is set to liquidate approximately $160 million in loans backed by 68,000 Bitcoin mining machines. This news comes amid on-chain data indicating that crypto miners are selling both freshly minted Bitcoins and old coins to offset negative balance sheets.

The move has been met with criticism from crypto lawyer Harrison Dell, Director at Australian law firm Cadena Legal, who suggested that this is the beginning of more troubles in the industry set to unfold in 2023. He explained that the bidding process began last year and is scheduled to end soon, and that debt-collection businesses may be buying the debts for “cents on the dollar.” Moreover, BlockFi may not have many options for repaying creditors other than asset liquidation.

The increased liquidations could cause a major sell pressure on Bitcoin and crypto prices, and could have a ripple effect throughout the industry. BlockFi is also eyeing a share from the $465 million in SBF’s Robinhood stake that the DoJ anticipates seizing as proceeds of fraud.

The news of BlockFi’s troubles has caused a stir in the crypto industry, as many are concerned that more firms could be in similar positions. Crypto investors and traders must be aware of the risks associated with the industry and should always practice due diligence before investing. Furthermore, it is also important to remember that while the overall market is still highly volatile, there are still plenty of opportunities for investors to capitalize on.

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