BlockFi reaches $875 million settlement with FTX, Alameda research

BlockFi, the crypto-lender company that almost went bankrupt twice during the crypto crises in 2022, reached an agreement in principle with FTX and Alameda for a payment of $875 million. The agreement was also officially stated in court documents. If BlockFi can get this payment from FTX and Alameda, it will also have the opportunity to pay its customers in full.

BlockFi reaches $875 million settlement with FTX, Alameda research

BlockFi, which was in difficulty with the Terra LUNA crash in the summer of 2022, but went bankrupt in the winter of the same year, this time with the FTX crash, reached an important agreement on making payments to all creditors.

The crypto lender has reached an agreement in principle with FTX and Alamaeda on the payment of $874.5 million. As soon as FTX’s restructuring programme is prepared, a prepayment of $250 million will also be made for BlockFi.

FTX will also drop its accusations against BlockFi. In order to guarantee all these agreements made in principle, the signature of the court judge is required. However, experts are certain that it will be done.

Tangled relationships…

BlockFi and the FTX-Alameda trio have an intense and complex history of credit deals. As it will be remembered, after the Terra LUNA crash, FTX wanted to buy the struggling BlockFi. Even at that time, FTX provided BlockFi with a $400 million credit and became one of the company’s largest creditors.

However, in the same time period, BlockFi also gave a $900 million credit to Alameda, FTX’s sister company, which went bankrupt with it.

All these relationships were further complicated by the bankruptcy of FTX in November 2022, and all 3 companies eventually filed for bankruptcy.

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