Realm

BlockFi recently reached a significant settlement with the estates of FTX and Alameda Research amounting to nearly $1 billion, according to a court filing. After a complicated relationship between these three companies, this agreement was reached. Just after FTX collapsed, crypto lender BlockFi also declared <a href="https://news.todayq.com/blockfi-creditors-file-for-liquidation-accusing-ceo-zac-prince-of-fraud/" target="_blank" rel="noopener noreferrer nofollow">bankruptcy</a> due to the contagion. Now, BlockFi may be able to get their customers back with this settlement. The FXT, Alameda settlement 
BlockFi will receive $874.5 million in claims against FTX and Alameda Research under the settlement. A secured claim of $250 million will get paid to BlockFi after FTX’s plan to end its bankruptcy, filed in December, is approved.
According to the settlement, FTX will drop its claims against BlockFi, allowing BlockFi to proceed with the remainder of its claims under FTX’s plan. It still needs to be signed off by a judge.
“We’re pleased to have been able to reach a result, with the assistance of Judge Goldblatt, that allows BlockFi’s claims against FTX for the full value of loans to Alameda and assets on the FTX exchange, waives “clawback” claims by FTX that could diminish those claims, and provides BlockFi with a partially secured claim,” said Kenneth Aulet, partner at Brown Rudnick. “It is an excellent outcome for BlockFi’s customers and creditors” he added. BlockFi’s reorganization plan 
The relationships between FTX, <a href="https://news.todayq.com/ftx-alameda-move-23-59m-crypto-amid-bitcoin-rally/" target="_blank" rel="noopener noreferrer nofollow">Alameda</a>, and BlockFi were complex and intertwined. BlockFi received a $400 million line of credit from FTX, and under its legal name West Realm Shires, it was one of BlockFi’s largest creditors with a $275 million claim.
“This negotiated agreement represents an excellent outcome for BlockFi and its customers, one better than could have been anticipated even on the effective date of the Plan,” BlockFi’s bankruptcy administrators wrote in the filing, adding “This Plan ensures that money reserved for litigation with FTX is directed instead to customer distributions.”
In 2022, Crypto lender BlockFi filed for bankruptcy protection, days after suspending withdrawals after FTX filed for bankruptcy.
As it filed for Chapter 11 bankruptcy protection, the company said it hoped to restructure while continuing operations. BlockFi had about $257 million in cash on hand, reports said.&nbsp; According to the company’s petition, BlockFi’s executives estimated that the company had more than 100,000 creditors, and checked off the ranges. As of then, the company’s assets and liabilities were estimated to be between $1 billion and $10 billion.
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BlockFi’s path to recovery? Scores nearly $1B settlement with FTX

Todayq News

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