BlockFi has asked the bankruptcy court to allow it to begin liquidating the lending platform and distribute the funds to creditors, according to a May 12 bankruptcy court filing. The company had previously tried unsuccessfully to sell its lending platform to raise funds and repay creditors, the documents show. BlockFi lawyers said the sale of the lending platform made very limited sense given recent regulatory developments. As such, BlockFi is self-liquidating the transaction and will distribute its assets to creditors in accordance with the terms of the liquidation plan. In November last year, BlockFi filed for Chapter 11 bankruptcy following the collapse of FTX. The company has since struggled to sell valuable parts of its business, including crypto mining. BlockFi may still seek “alternative transactions to sell all or a substantial portion of its assets.” The plan must be approved by the bankruptcy court to move forward. According to previous news, the recovery of BlockFi's customers and creditors will depend largely on the company's claims against its commercial counterparties, including FTX and Alameda. It is reported that BlockFi froze about $355 million in cryptocurrencies on FTX and provided another $671 million in loans to Alameda Research, FTX's trading arm, adding up to more than a billion dollars.