United

when

Crypto lending company BlockFi, which filed for bankruptcy in 2022 following the collapse of crypto exchange FTX, announced on Monday the successful sale of its <a href="https://bitcoinist.com/ftx-blockfi-given-green-light-negotiate-settlement/" target="_blank" rel="noopener ">FTX claims</a>. This marks another step towards completing BlockFi’s bankruptcy process, allowing for the final distribution of funds to creditors.&nbsp; 
According to Monday’s <a href="https://www.prnewswire.com/news-releases/blockfi-plan-administrator-announces-claims-sale-and-full-customer-recovery-302203082.html" target="_blank" rel="noopener nofollow">announcement</a>, the sale of FTX claims was completed at a “substantial” premium to their face value, which the plan administrator said is intended to ensure a “near-term” final distribution of 100% to all allowed customers and general unsecured creditors. 
<h2 id="best-possible-outcome-for-customers">‘Best Possible Outcome For Customers’</h2> 
BlockFi’s plan administrator, Mohsin Y. Meghji, disclosed in the announcement that he had filed a report to the United States Bankruptcy Court for the District of New Jersey, confirming the transaction’s closing that monetizes all claims against FTX.&nbsp; 
Meghji believes this is the “best possible outcome” for BlockFi’s customers, even stating that it exceeds expectations from when the <a href="https://bitcoinist.com/blockfi-founder-speaks-out-on-bankruptcy/" target="_blank" rel="noopener ">bankruptcy </a>cases were first filed in November 2022. Meghji further said: 
<blockquote>
 …These results, achieved through tireless efforts by various parties, are remarkable. We intend to commence the Final Customer Distribution as quickly as reasonably practicable
</blockquote> 
As <a href="https://bitcoinist.com/blockfi-resolves-dispute-with-ftx-alameda-research/">reported </a>by Bitcoinist, in March 2024, BlockFi settled with FTX and the bankrupt crypto exchange’s trading arm, Alameda Research, enabling BlockFi to receive $874.5 million in claims against them.&nbsp; 
This settlement paved the way for subsequent distributions to BlockFi customers based on anticipated FTX distributions. An important aspect of the settlement was the plan administrator’s option to monetize the FTX Claims through a third-party sale. 
<h2 id="blockfi-s-platform-inactive-repayment-progresses">BlockFi’s Platform Inactive, Repayment Progresses</h2> 
Just a month ago, in June, the plan administrator determined that a sale of the FTX Claims at a level that maximized customer returns and generated significant recoveries for subordinated creditors was feasible.&nbsp; 
The sale process commenced on June 24, 2024, and concluded on July 10, 2024, with the highest and best bid acceptance. Interestingly, the purchase price exceeded the face value of the FTX Claims, providing substantial value to BlockFi and its creditors. 
It was also <a href="https://bitcoinist.com/blockfi-announces-website-shutdown/" target="_blank" rel="noopener ">disclosed </a>that BlockFi’s platform is no longer active, and any “in-kind” distributions will be facilitated through the plan administrator’s collaboration with Coinbase. In the wake of this, users have reported receiving notifications from the US-based exchange, indicating successful matching of their identifying information with BlockFi’s data.&nbsp; 
However, despite the sense of progress in the bankrupt crypto lender’s bankruptcy proceedings, Bitcoinist also <a href="https://bitcoinist.com/blockfi-to-reimburse-customers-soon-via-coinbase-users-make-disturbing-claims/" target="_blank" rel="noopener ">reported </a>on July 19 that while many customers expressed excitement and viewed the repayment development as positive news, some remained skeptical and stressed the need to see the funds deposited into their Coinbase accounts. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/UkAOiOP0/" alt="BlockFi" width="1814" height="858"> 
Featured image from DALL-E, chart from TradingView.com&nbsp;

BlockFi Clears FTX-Related Claims, Readies For Final Creditor Distributions

Tabla de contenidos

Bitcoinist

Otros artículos publicados el 24 jul 2024

Court Sets Deadline for Terra Collapse Crypto Claims

Hackers Breach Monoswap Platform

Hex Trust gets initial nod for payment institution license in Singapore

The Rise of Cosmos and Aave No Match for Rollblock: Superior Security Potential 100x Returns Stea...

Elon Musk Sets Eyes on Bitcoin (BTC) as Crypto Inflows Keep Pushing RCO Finance Pre-Sale to $1 Mi...

Ethereum (ETH) produced 60K extra tokens in a month on low but persistent inflation

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!