BlockFi Successfully Secures $1 Billion Agreement with Bankrupt FTX, Customers Anticipate Complete Reimbursement

BlockFi, a crypto lender, has reached a preliminary agreement with the bankrupt estates of FTX and Alameda Research, which could potentially result in a recovery of nearly $1 billion for BlockFi’s affected customers. This breakthrough deal is valued at approximately $874.5 million, with $250 million being secured. FTX has committed to contributing $185.3 million, acknowledging funds that were held at the time of its bankruptcy filing. The agreement aims to streamline FTX’s bankruptcy proceedings and prioritize the repayment of BlockFi’s clients once FTX’s bankruptcy plan is approved. This agreement is seen as a positive outcome by BlockFi, providing a glimmer of hope for a better recovery for both the company and its customers. However, it should be noted that uncertainties still exist, and the full repayment of FTX’s customers is not guaranteed. BlockFi also acknowledges the possibility of varying returns for interest-bearing accounts, ranging from 39.4% to 100%. The settlement agreement is currently awaiting approval from Judge John Dorsey, and upon approval, a swift liquidation and repayment to BlockFi is expected. The recent controversy surrounding FTX’s claim window, which has been criticized as a potential “robbery,” has further added to the uncertainties surrounding the situation. Despite these challenges, BlockFi remains optimistic about the potential resolution and the recovery of its customers.