Bankrupt cryptocurrency lender BlockFi has entered into a preliminary agreement with FTX and Alameda Research estates to settle for $874.5 million, as per a filing in bankruptcy court on Wednesday.
The settlement will be finalized upon court approval. Under this agreement, BlockFi, which filed for Chapter 11 bankruptcy after being affected by FTX’s collapse in 2022, will receive a customer claim of $185.2 million from FTX and a claim of $689.3 million from Alameda Research, according to the filing.
The filing states that customers of BlockFi will be compensated in full value for these claims, subject to FTX meeting its distribution goals.
Out of the total amount, $250 million will be a secured claim, giving BlockFi priority for payment after FTX’s reorganization plan is approved by creditors.
The court filing stated that this will allow BlockFi to receive the $250 million shortly after FTX’s plan is confirmed, potentially leading to a second interim distribution in the near future.
