BlockFi, FTX, Alameda Estates Reach $874.5M Settlement, Pending Judge's Approval

According to a court document, bankrupt

cryptocurrency

lending company BlockFi has reached a “principle” agreement with FTX and Alameda Research Estates for nearly $1 billion, which could potentially restore all assets for BlockFi customers.

Under the settlement agreement, BlockFi will receive a total compensation of $874.5 million from FTX and Alameda Research. $250 million will be treated as secured claims and will be prioritized for payment to BlockFi after creditor approval of the bankruptcy plan submitted by FTX in December.

As a result, FTX will waive its claims against BlockFi, and according to the settlement agreement, BlockFi's remaining claims will be paid out like other similar claims under FTX's proposed plan. The agreement is pending judge's signature.

It is reported that BlockFi had obtained a $400 million credit line from FTX, and FTX's legal name, West Realm Shires, is one of BlockFi's largest creditors, with claims totaling $275 million.