Lending
BlockFi Successfully Sells FTX Claims in Bankruptcy Process
Thursday. July 25 at 3:00 AM
1 min. readCrypto lending company BlockFi, which declared bankruptcy in 2022 due to the collapse of crypto exchange FTX, announced the sale of its FTX claims on Monday. This sale is a significant step towards finalizing BlockFi's bankruptcy proceedings and ensuring a full distribution of funds to creditors. The sale of FTX claims was completed at a premium to their face value, aiming to provide a 100% near-term distribution to all allowed customers and unsecured creditors. The plan administrator, Mohsin Y. Meghji, reported the successful transaction to the US Bankruptcy Court, monetizing all claims against FTX. This outcome exceeded expectations and was made possible through collaborative efforts. BlockFi settled with FTX in March 2024, receiving $874.5 million in claims. The sale of FTX claims at a high level was determined feasible in June, resulting in substantial value for BlockFi and its creditors. Despite progress, some customers remain cautious about fund deposits.