BlockFi Signs Agreement with FTX and Alameda to Recover Nearly a Billion Dollars
In a pivotal development in its bankruptcy and restructuring process, BlockFi has reached a settlement agreement with FTX and Alameda Research for almost a billion dollars, a significant step towards full recovery of funds for BlockFi’s clients.
Clients of BlockFi Close to Recovering Their Funds
BlockFi, the bankrupt cryptocurrency lender caught in the turmoil following FTX’s collapse, has announced that it has reached a “principle” settlement agreement with FTX and Alameda Research. This agreement, totaling $874.5 million in claims against FTX and Alameda Research, could mark the beginning of a full recovery for BlockFi’s clients.
Details of the Agreement
According to the terms of the agreement, BlockFi will receive $250 million in secured claims, prioritizing payment to BlockFi once FTX’s bankruptcy exit plan, filed in December, is approved by its creditors.
FTX will waive its own claims against BlockFi, allowing BlockFi to receive payment for its remaining claims similarly to other similar claims under FTX’s plan, once the agreement is approved by a judge.
The relationship between FTX, Alameda, and BlockFi was complex and interconnected. BlockFi had received a $400 million credit line from FTX, and, under its legal name, West Realm Shires, FTX was one of BlockFi’s largest creditors with a $275 million claim.
