Eduardo Saverin, a co-founder of Facebook, is set to buy the assets of Jumio in bankruptcy proceedings of the startup focused on online identity verification.

The company, whose clients include financial services firms, said in a press release Monday that Saverin has formed a vehicle named Jumio Acquisition and has made a $3.7 million stalking-horse bid on the company's assets. Bankruptcy sales are conducted via auction, so the final price could be higher or another group could beat out Saverin, who was an early backer of Jumio. The company's U.S. business filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court for the District of Delaware on Monday.

Jumio, based in Palo Alto, Calif., said the bankruptcy was prompted by legacy issues "combined with related government investigations and proceedings [that] have made it difficult for Jumio to secure necessary funding for its operations."

Last year, Daniel Mattes, its founder, was replaced as its chief executive after an investigation into possible financial irregularities, Fortune reported.

Jumio said that the bankruptcy sale is "the single best path" for the company to move forward.

"Jumio created the online ID verification industry, and we are thriving from an operational standpoint as we continue to see robust bookings and build strong relationships with some of the most recognizable brands and companies in the world," said Stephen Stuut, its current chief executive. He added, "Despite some of the challenges Jumio's leadership team inherited, our underlying business remains exceptionally strong."

Besides Saverin, Jumio's backers include Andreessen Horowitz, Citi Ventures and Pinnacle Ventures.

The sale should not disrupt operations, the company said. If Jumio Acquisition is the winning bidder, it is planning to keep the existing management team, the company said in a press release.