BlockFi reaches a settlement agreement with FTX and Alameda Research in the amount of $874.5M

Mar 07, 2024
Bankrupt crypto lender BlockFi has reached an agreement with FTX and Alameda Research after a recent lawsuit. As part of the settlement agreement, BlockFi will receive a total of almost a billion US dollars from the companies.

Under the agreement, FTX undertakes to waive its claims against BlockFi, which will allow the payment of the amount for all remaining claims in the same way as other similar claims in accordance with the settlement agreement.

Kenneth Olet, a partner at Brown Rudnick, said the agreement was an excellent solution for BlockFi’s clients and creditors. An impressive result was achieved with the help of Judge Goldblatt, who resolved BlockFi’s claims against FTX regarding the full value of Alameda loans and assets on the FTX exchange.

The judge dismisses FTX’s refund claims, which reduce the claims and provide BlockFi with a partially secured claim.

Earlier, the case between FTX, Alameda and BlockFi was complicated by the fact that BlockFi received a $400M credit line from FTX, and FTX, under its legal name West Realm Shires, was one of BlockFi’s largest creditors with a claim for $275M.

BlockFi bankruptcy administrators also note that the settlement agreement represents an excellent result for the company and customers. The agreement ensures that the funds reserved for litigation with FTX will be used for payments to customers.