BlockFi's Big Win: $874.5M Settlement with FTX and Alameda Research In a major breakthrough, BlockFi has struck a deal with FTX and Alameda Research, securing a whopping $874.5 million windfall to repay customers affected by its bankruptcy.
The agreement, as outlined by the US Bankruptcy Court, sees BlockFi gaining
$185.2 million in claims against FTX and a hefty
$689.3 million against Alameda Research.
What's more, a cool
$250 million of this sum will be treated as a secured claim, offering added protection
for BlockFi's recovery efforts. This settlement is not just about the money; it's about
customer-centricity. By supporting FTX's reorganization plan,
BlockFi aims to expedite payments and bring closure to the case. Back in September 2023, BlockFi and FTX reached an initial agreement that saw FTX willingly relinquishing most of its claims – a positive step towards resolution.
The court filing emphasizes that this deal is a resounding success, ensuring
"complete recovery" for specific claims and setting the stage for customers to receive their dues in full. With BlockFi's security interest recognized, there's an added advantage:
faster payouts for customers as FTX moves forward with its reorganization plans. And here's the cherry on top: this favorable outcome was achieved through early mediation,
saving on legal costs and channeling resources towards customer distributions. A win-win!
