Bankrupt cryptocurrency lender BlockFi has reached an in-principle settlement of $874.5 million with the estates of collapsed crypto exchange FTX and its sister firm Alameda Research.
The agreement, subject to court approval, would see BlockFi receive $185.2 million in claims against FTX, representing funds held in FTX accounts at the time of its collapse in 2022. The firm would also receive $689.3 million in claims against Alameda Research.
According to a recent court filing, BlockFi’s customers are expected to receive the claims at full value as long as FTX fulfills its own bankruptcy distribution goals. Notably, $250 million of the settlement is categorized as a secured claim, backed by collateral to prioritize its payment once FTX’s reorganization plan is approved by creditors.
The settlement comes as both BlockFi and FTX navigate their separate Chapter 11 bankruptcy proceedings. In December 2023, FTX submitted an amended reorganization plan aiming to maximize benefits for creditors and stakeholders, while last month, BlockFi secured another settlement with bankrupt crypto hedge fund Three Arrows Capital, with details remaining undisclosed.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/mar/07/
