It appears that BlockFi, the now-defunct cryptocurrency lending business, intends to dump approximately $160 million worth of debts that are collateralized by approximately 68,000 Bitcoin miners as part of the company’s filing proceedings. bankrupt. These debts are backed by the Bitcoin mining machines themselves.

According to a report made public on January 24 by Bloomberg, two people who characterized themselves as being “knowledgeable about the subject” indicated that BlockFi began the process of liquidating the debts the previous year. This information was cited in the article.

The cryptocurrency lender filed its creditor protection petition under Chapter 11 of the United States Code in November. The lending company’s failure was attributed, at least in part, to the large exposure it had to cryptocurrency exchange FTX, which has since closed its doors.

However, the sources claim that some of these loans have already defaulted since then, and due to the drop in the price of Bitcoin mining equipment, they may not have sufficient collateral. Reports indicate that January 24 is the last day potential loan offerors have until the end of the day to submit their applications for the financing that is now available.

According to Dell, the fact that the debt collection agencies were buying the loans for “pennies on the dollar” demonstrated that these agencies were likely to participate in the bidding process for the loans. The bidding procedure for the loans is described as “cents on the dollar.”

Furthermore, he said that BlockFi’s administrators are likely to be able to collect “nothing else” from these assets other than the cash they were given. This was in reference to the debt owed to them.