BlockFi Settles With FTX, Alameda Estates for $874.5M
Summary
Bankrupt cryptocurrency lender BlockFi has reached a preliminary agreement with the estates of FTX and Alameda Research for nearly $1 billion. This could potentially lead to full value recovery for BlockFi's customers. The settlement stipulates that BlockFi will receive a total of $874.5 million in claims against FTX and Alameda Research, with $250 million treated as a secured claim. This will prioritize payment to BlockFi after FTX's bankruptcy plan, filed in December, is approved by its creditors. In return, FTX will drop its claims against BlockFi, allowing BlockFi's remaining claims to be paid out under FTX's plan. The agreement still requires judicial approval.
