- BlockFi has agreed to resolve its dispute with FTX and Alameda Research.
- The companies had sued each other last year.
- With the agreement, BlockFi seeks to receive hundreds of millions in claims.
Bankrupt crypto lender BlockFi has reached an “in principle” agreement to settle its dispute with FTX and Alameda Research estates for almost $1 billion, a recent court filing shows.
The companies sued each other last year to recover the money they had loaned each other before they both fell into bankruptcy following the collapse of Sam Bankman-Fried’s exchange in November 2022.
FTX Agrees to Pay BlockFi Up to $874 Million
According to the document filed at the U.S Bankruptcy Court District of New Jersey, BlockFi has agreed to a settlement to see the lender receive up to $874.5 million in claims against FTX and Alameda Research.
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$185.2 million will come from FTX to account for the amount BlockFi held in the exchange’s trading account before it collapsed, while $689.3 will account for Alameda research loans.
Of the $874.5 million, 250 million will be treated as a secured claim with collateral to prioritize the payment to BlockFi once FTX’s bankruptcy plan is approved by its creditors.
“BlockFi ensures that it will receive that $250 million shortly after the FTX plan is confirmed and goes effective – likely allowing a second interim distribution in the near term.” The court filing read.
FTX will drop its claims against BlockFi as part of the agreement, allowing the crypto lender’s remaining claims to be settled like other similar claims in FTX’s reorganization plan.
The terms of the proposed settlement are subject to various conditions, including approval by U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware, and FTX’s ability first to repay its own customers and creditors.
Read about FTX’s plan to sell its Anthropic stake:
FTX Receives Court Approval to Sell $1.4B Anthropic Stake
Stay updated on Sam Bankman-Fried’s new lawyer:
SBF Sticks with Mashinsky’s Lawyer Despite Potential Conflict
