BlockFi, a digital asset lender, has been granted an extension by a New Jersey bankruptcy judge to submit an exit plan. After filing for bankruptcy in November 2022, the cryptocurrency lender has been granted a 48-day extension until May 15th to submit a plan. BlockFi’s lawyers have stated that the company is exploring a potential sale of its assets or the possibility of getting an outside backer to support a restructuring deal. Upwards of $10 billion is owed by the company to a vast number of creditors exceeding 100,000.
A group of BlockFi customers proposed that they should assume responsibility for the bankruptcy proceedings to expedite the restitution of cryptocurrency held on the platform to the creditors. Although Judge Michael Kaplan rejected the committee’s appeal, he granted an extension shorter than the one requested by BlockFi.