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FTX and Alameda have settled their disputes with BlockFi, agreeing to pay the firm up to $874 million, subject to court approval.
Bankrupt crypto companies <a href="https://crypto.news/tag/ftx/" target="_blank" rel="noopener noreferrer nofollow">FTX</a> and <a href="https://crypto.news/tag/blockfi/" target="_blank" rel="noopener noreferrer nofollow">BlockFi</a> have reportedly settled their disputes arising from their collapses in 2022 after the crypto exchange left many companies in a death spiral that has billions of dollars left in limbo. According to the agreement details, FTX will pay BlockFi up to $874.5 million, pending approval by U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware, Reuters <a href="http://www.reuters.com/technology/ftx-reaches-settlement-with-blockfi-may-pay-up-874-million-2024-03-07/" target="_blank" rel="noopener noreferrer nofollow">reports</a>.
The litigation between the two entities started in 2023, with both seeking to recoup funds lent before their joint bankruptcies in November 2022. Under the newly reached settlement, FTX will a $250 million payment to BlockFi, while the remaining sum is contingent on FTX’s efforts to reimburse its customers amidst bankruptcy proceedings.
You might also like: <a href="https://crypto.news/ftx-galaxy-asset-management-intermediary-bankruptcy/" rel="noopener noreferrer nofollow"> FTX reaffirms Galaxy Asset Management as exclusive intermediary amid bankruptcy chaos </a>
Additionally, FTX has also committed to pay an extra $185.3 million to BlockFi, representing the amount held by BlockFi in its FTX trading accounts when the exchange <a href="https://crypto.news/ftx-saga-what-happened-to-ftx/" target="_blank" rel="noopener noreferrer nofollow">collapsed</a>. The distribution percentage for BlockFi’s customers holding interest-bearing accounts varies considerably, with potential recoveries ranging between 39.4% and 100% of their account balances.
As part of the settlement, BlockFi has agreed to drop its lawsuit <a href="https://crypto.news/blockfi-to-sue-former-ftx-boss-firm-over-robinhood-shares/" target="_blank" rel="noopener noreferrer nofollow">concerning</a> 56 million Robinhood shares, allegedly pledged as collateral for loans to <a href="https://crypto.news/tag/alameda-research/" target="_blank" rel="noopener noreferrer nofollow">Alameda Research</a>, FTX’s main market maker. These equity shares were seized by the U.S. Department of Justice following the arrest of FTX founder <a href="https://crypto.news/tag/sam-bankman-fried/" target="_blank" rel="noopener noreferrer nofollow">Sam Bankman-Fried</a>, who’s now <a href="https://crypto.news/ftxs-bankman-fried-is-deeply-sorry-for-8b-fraud-pushes-for-shorter-sentence/" target="_blank" rel="noopener noreferrer nofollow">facing over 100 years</a> in prison after being convicted on multiple charges related to the collapse of his exchange.
Read more: <a href="https://crypto.news/ftx-receives-go-ahead-to-sell-its-stake-in-ai-startup-anthropic/" rel="noopener noreferrer nofollow"> FTX receives go-ahead to sell its stake in AI startup Anthropic </a>

FTX, Alameda reach settlement with crypto lender BlockFi, will pay up to $874m

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