BlockFi Completes FTX’s Claim Sale Ahead of Bankruptcy Filing
BlockFi, the defunct centralized crypto lender, announced on July 25 the successful completion of the sale of its FTX claims, representing a crucial step towards the company’s wind-down, and promises full repayment to eligible creditors.
BlockFi plan administrator Mohsin Y. Meghji announced the sale of FTX claims, which began on June 24 and concluded on July 10. The bid was described as the “highest and best,” secured at a “substantial premium to their face value.”
While the exact details of the sale are undisclosed, the transaction was facilitated through an unnamed third party.
Massive #FTX claims sale by BlockFi: BlockFi’s $874m of claims includes a $439m general unsecured claim and a $250m secured claim, both against Alameda, and a $185m FTX customer claim. Bids are due by July 1, 2024. #bankruptcy #crypto pic.twitter.com/WK6aYtUPWn
— Claims Market (@claims_market) June 25, 2024
This development follows BlockFi’s $874.5 million in-principle settlement with the FTX and Alameda Research estates in March 2023.
The settlement cleared the way for the plan administrator to initiate preparations for subsequent distributions to BlockFi creditors.
“This transaction marks a final chapter in the wind-down and is the best possible outcome for customers of BlockFi,” Meghji said. “These recoveries on customer claims, and the timeline those recoveries will be distributed on, were unimaginable when these cases were filed in November 2022.”
The sale is expected to enable a “near-term” final distribution, covering 100% of eligible customer and general unsecured creditor claims in fiat terms. BlockFi will commence the final customer distribution “as quickly as reasonably practicable.”
On May 9, BlockFi shut down its web platform and announced
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