BlockFi, one of the dominos that fell after the collapse of FTX, has received the court’s approval to sell some of its crypto mining equipment to refund creditors who lost funds after it went bankrupt.

The U.S. bankruptcy court of New Jersey – overseeing the bankruptcy proceeding of the crypto lender – green-lit the sale of 6,400 mining rigs for $4.7 million to U.S. Farms & Mining Opportunity Fund, per court documents filed March 24.

According to a previous filing, most of the equipment for disposal are Antminers in Texas, Georgia, Kentucky, Dakota, and Norway. An estimated 400 of the rigs were reportedly obtained through foreclosure.

BlockFi filed for Chapter 11 bankruptcy protection in November last year, partly due to links with FTX, which had granted the company several lines of credit, including a $250 million in June 2022. Founder Zac Prince said during the unraveling that the company’s exposure to FTX caused a liquidity crisis.

(By Jared Kirui)