BlockFi, FTX, Alameda Estates Reach $874.5M Settlement, Pending Judge's Approval
According to a court document, bankrupt cryptocurrency lending company BlockFi has reached a “principle” agreement with FTX and Alameda Research Estates for nearly $1 billion, which could potentially restore all assets for BlockFi customers. Under the settlement agreement, BlockFi will receive a total compensation of $874.5 million from FTX and Alameda Research. $250 million will be treated as secured claims and will be prioritized for payment to BlockFi after creditor approval of the bankruptcy plan submitted by FTX in December. As a result, FTX will waive its claims against BlockFi, and according to the settlement agreement, BlockFis remaining claims will be paid out like other similar claims under FTXs proposed plan. The agreement is pending judges signature. It is reported that BlockFi had obtained a $400 million credit line from FTX, and FTXs legal name, West Realm Shires, is one of BlockFis largest creditors, with claims totaling $275 million.
