In a significant turn of events, BlockFi has reached a settlement with the estates of FTX and Alameda Research, inching closer to a full recovery for its customers. The bankrupt crypto lender has agreed to an ‘in principle’ settlement for nearly $1 billion, with a total claim amount of $874.5 million.
As part of the settlement, BlockFi will receive a $250 million secured claim, prioritizing its payment once FTX’s plan to end bankruptcy is approved. This agreement also sees FTX dropping its claims against BlockFi, streamlining the payout process for BlockFi’s remaining claims.
The intricate relationship between BlockFi, FTX, and Alameda Research has been a focal point in the crypto world. This settlement not only untangles some of that complexity but also promises a brighter future for BlockFi’s customers and creditors.
BlockFi’s bankruptcy administrators have hailed this agreement as an ‘excellent outcome’, ensuring that funds reserved for litigation are now redirected towards customer distributions. This marks a pivotal step in BlockFi’s journey towards financial recovery and stability.
