BlockFi Settles $874.5 Million Claims with FTX and Alameda Research

The lending platform BlockFi, currently undergoing bankruptcy proceedings, has reached a preliminary agreement to settle claims against FTX and Alameda Research for $874.5 million.

If approved by the court, the firm will distribute funds to its clients. The amount is expected to fully satisfy creditor claims.

FTX will contribute $185.2 million, while $689.3 million will come from its subsidiary, Alameda Research.

Of the total amount, $250 million is secured.

“BlockFi ensures it will receive these $250 million shortly after the confirmation and effectiveness of the FTX plan. This will enable a second distribution in the near term,” the court documents state.

In February 2024, the U.S. bankruptcy court approved a settlement between BlockFi and Three Arrows Capital.

In December 2023, FTX presented a revised reorganization plan. According to the document, assets will be valued at the rate on the bankruptcy filing date—November 11, 2022.