United

when

Partner

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/blockfi-sells-ftx-claims-at-significant-premium/" data-wpel-link="internal">BlockFi Sells FTX Claims at Significant Premium</a><br></p>
<p style="text-align: justify">The defunct crypto-focused lending institution BlockFi announced that <strong>FTX</strong> claims were sold at a significant premium over their nominal values. This transaction marks a significant milestone in the firm’s bankruptcy process, set to ensure the final distribution of 100% of eligible customer and general unsecured creditor claims. The completion of this sale indicates that BlockFi’s bankruptcy proceedings are nearing a conclusion.</p> 
<h2 style="text-align: justify" id="sale-reported-to-court">Sale Reported to Court</h2> 
<p style="text-align: justify">BlockFi’s plan administrator and Managing Partner at M3 Partners, Mohsin Y. Meghji, reported the sale to the United States Bankruptcy Court for the District of New Jersey. The sale process began on June 24 and concluded on July 10, resulting in the highest and best offer significantly exceeding the nominal value of the claims. Although details of the third party involved in the transaction were not disclosed, the sale enabled BlockFi to make a final distribution to its creditors in the near term.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-373094 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/07/blockchain-43.jpg" alt="" width="740" height="415"></p> 
<p style="text-align: justify">In March, <strong>BlockFi</strong> reached an agreement worth $874.5 million with the estates of FTX and <strong>Alameda Research</strong>, allowing the plan administrator to begin planning subsequent distributions to BlockFi creditors. The significant premium obtained from the sale of FTX claims facilitates 100% payment in fiat currency to eligible customers and general unsecured creditors, which the firm sees as the best possible outcome for its clients.</p> 
<h2 style="text-align: justify" id="distribution-to-begin-soon-date-not-yet-set">Distribution to Begin Soon, Date Not Yet Set</h2> 
<p style="text-align: justify">BlockFi’s final distribution process is planned to start as soon as possible. In May, BlockFi shut down its web platform and announced plans to begin in-kind crypto distributions via <a href="https://en.coin-turk.com/hashkey-exchange-to-list-compound-comp-on-december-7th/" data-wpel-link="internal">Coinbase</a> in July. These distributions will be carried out in batches over several months. While Coinbase will handle the crypto distributions, fiat claims will be processed by <strong>Kroll</strong> and payment processing partner Digital Disbursements.</p> 
<p style="text-align: justify">However, customers outside the US are currently not eligible to receive funds. The firm noted that distributions to BlockFi International creditors might require additional identity verification and Know Your Customer (KYC) diligence to comply with international standards. This additional verification step could delay the process for customers outside the US.</p> 
<p style="text-align: justify">BlockFi’s bankruptcy journey began in November 2022 when it halted customer withdrawals and subsequently filed for Chapter 11 bankruptcy protection. As of September 2023, the bankruptcy court approved BlockFi’s plan to repay its 10,000 creditors. BlockFi operated as a centralized lending institution offering interest-bearing deposit accounts and functioning similarly to a bank by lending user deposits to clients in the crypto <a href="https://newslinker.co/category/science/space/" target="_blank" rel="noopener" data-wpel-link="exclude">space</a>.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/blockfi-sells-ftx-claims-at-significant-premium/" data-wpel-link="internal">BlockFi Sells FTX Claims at Significant Premium</a></h5>

BlockFi Sells FTX Claims at Significant Premium

Table of Contents

COINTURK NEWS

Other articles published on Jul 23, 2024

Trump Fired Biden Solana Memecoin Will Surge 17,000% Before Exchange Listings, While SHIB and Dog...

Bithumb Adds AVAIL to Korean Won Market

From Telegram to Session: Navigating Privacy in the Era of Data Breaches

Taproot Assets on Lightning Released to Improve Speed, Usability, and Security

Bitwise Unveils ETHW, Spot Ethereum ETF with ENS Subnames

SHIB Burn Rate Soars 557% Amid Community Efforts and Petitions

Join our free newsletter for daily crypto updates!