BlockFi Reaches an Agreement with FTX and Alameda

According to a recent court filing, bankrupt cryptocurrency lender BlockFi has reached a tentative agreement with the estates of crypto exchange FTX and Alameda Research for nearly $1 billion.

This could potentially result in BlockFi’s customers being fully reimbursed.

The deal includes $874.5 million in claims against FTX and Alameda, with $250 million being treated as a secured claim.

This would prioritize payment to BlockFi once FTX’s bankruptcy plan, which was filed in December, is approved by its creditors. In return, FTX will drop its claims against BlockFi and allow the lender’s remaining claims to be paid out like other similar claims.

The agreement is still subject to approval by a judge. The success of this agreement was praised by Kenneth Aulet, a partner at Brown Rudnick who represented the Committee of Unsecured Creditors.

He stated that it was a positive outcome for BlockFi’s customers and creditors, as it allows BlockFi’s claims against FTX to be paid in full without fear of clawback claims.