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<ul>
 <li>BlockFi finalized the sale of FTX claims, achieving a substantial premium, as part of its bankruptcy proceedings.</li>
 <li>An $874.5 million settlement with FTX and Alameda Research enables near-term distribution of 100% of eligible claims.</li>
 <li>BlockFi clients’ crypto distributions via Coinbase, while cash claims are managed by Kroll and Digital Disbursements.</li>
</ul>
<p>BlockFi has completed the sale of its FTX claims, a notable advancement in the centralized crypto lender’s bankruptcy process. This was <a href="https://www.prnewswire.com/news-releases/blockfi-plan-administrator-announces-claims-sale-and-full-customer-recovery-302203082.html" target="_blank" rel="noopener noreferrer nofollow">announced</a> by Mohsin Y. Meghji, BlockFi’s plan administrator and M3 Partners Managing Partner. Initiated on June 24 and finalized on July 10, the sale garnered a “substantial premium to their face value,” as stated by Meghji. The transaction was facilitated through an undisclosed third party.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4e2.png" alt="📢" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4bc.png" alt="💼" class="wp-smiley" style="height: 1em; max-height: 1em;"> According to CoinDesk, bankrupt crypto lender BlockFi has requested a U.S. court to mandate full repayment to all eligible customers and unsecured creditors. BlockFi administrators recently liquidated $874.5 million worth of FTX bonds at a significant premium to face value…</p>— BitcoinWorld Media (@ItsBitcoinWorld) <a href="https://twitter.com/ItsBitcoinWorld/status/1815664561430888564?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 23, 2024</a>
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<p>This sale is integral to BlockFi’s strategy for managing its <a href="https://cryptonewsland.com/blockfi-announces-platform-shutdown-amid-crypto-lending-struggles/" target="_blank" rel="noopener noreferrer nofollow">bankruptcy</a> process effectively. The sale proceeds will be crucial in BlockFi’s plan to settle outstanding debts and liabilities. Furthermore, this step is viewed as a positive advancement towards finalizing the bankruptcy process, offering a clearer path for the company’s creditors.</p>
<p><strong>Settlement with FTX and Alameda Research</strong></p>
<p>In March, BlockFi reached an $874.5 million in-principle settlement with the FTX and Alameda Research estates. This settlement has enabled the plan administrator to prepare for subsequent distributions to BlockFi creditors. These distributions are based on the anticipated value of the sale proceeds. BlockFi has stated that this sale will facilitate a “near-term” final distribution of 100% of eligible customer and general unsecured creditor claims in fiat terms.</p>
<p>The settlement has been crucial in setting the stage for this significant distribution. It underscores BlockFi’s commitment to resolving its financial obligations efficiently. This development also highlights the importance of strategic settlements in the bankruptcy process.</p>
<p><strong>Implications for BlockFi Customers</strong></p>
<p>BlockFi shut down its web platform in May and announced in-kind crypto <a href="https://cryptonewsland.com/blockfi-begins-interim-crypto-distributions-via-coinbase/" target="_blank" rel="noopener noreferrer nofollow">distributions via Coinbase</a> in July, which will be processed in batches over the coming months. However, Coinbase is not processing BlockFi clients’ fiat claims. Instead, eligible <a href="https://help.coinbase.com/en/coinbase/other-topics/other/blockfi-distribution" target="_blank" rel="noopener noreferrer nofollow">cash distributions</a> are handled by Kroll and its payment processing partner, Digital Disbursements.&nbsp;</p>
<p>The move to distribute assets through Coinbase reflects a strategic decision to leverage established platforms for efficient asset distribution. It also highlights the challenges and complexities involved in processing claims in a global context. For non-U.S. clients, additional identity verification and Know Your Customer diligence are required to comply with international standards.&nbsp;</p>
<p>BlockFi’s sale of its FTX claims represents a critical step in its bankruptcy process, providing a substantial premium and setting the stage for significant creditor distributions. The settlement with FTX and Alameda Research has been pivotal in facilitating these distributions. While challenges remain, particularly for non-U.S. clients, BlockFi is making substantial progress towards resolving its financial obligations.&nbsp;</p>
<h4 class="wp-block-heading" id="h-read-also">Read Also:</h4>
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<p>The post <a href="https://cryptonewsland.com/blockfi-concludes-sale-of-ftx-claims-amid-bankruptcy-process/" rel="noopener noreferrer nofollow">BlockFi Concludes Sale of FTX Claims Amid Bankruptcy Process</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

BlockFi Concludes Sale of FTX Claims Amid Bankruptcy Process

Crypto News Land

Alte articole publicate pe 23 iul. 2024

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