Crypto News – With the cryptocurrency lender BlockFi reaching an in-principle agreement with the estates of FTX and Alameda Research, the battle of the insolvent crypto companies appears to be coming to a conclusion.
BlockFi Agreement in Principle: Settlement with FTX and Alameda for $875 Million
The conditions of a settlement, which will award BlockFi a total of $874.5 million in claims against FTX and Alameda Research, are described in a court document filed on Wednesday. Of this, $689.3 million is a claim against BlockFi’s loans to Alameda, and $185.2 million is a claim based on the value of BlockFi’s assets on the FTX exchange. After FTX’s plan to exit bankruptcy is accepted by creditors, $250 million will be paid to BlockFi first as a secured claim. As a consequence, BlockFi anticipates being able to provide a second interim dividend to its creditors soon.
BlockFi Hopes to Make a Full Refund
In accordance with the settlement’s terms, FTX has also consented to give up its lawsuit against BlockFi. BlockFi is hopeful that the arrangement will get them one step closer to full recovery for creditors, even if a judge has not yet approved it.
This negotiated agreement represents an excellent outcome for BlockFi and its customers – one better than could have been anticipated even on the effective date of the plan. This plan ensures that money reserved for litigation with FTX is directed instead to customer distributions,
BlockFi’s bankruptcy administrators
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