BlockFi announced the sale of FTX claims, enabling a near-term final distribution of 100% to all allowed customer and unsecured creditor claims.
“This transaction is the best possible outcome for BlockFi’s customers. The recoveries on customer claims and the timeline for distribution were unimaginable when these cases were filed in November 2022.” said Meghji, BlockFi’s spokesperson.
The sale follows a March 2024 settlement with the defunct crypto exchange FTX, which provided BlockFi with over $874 million in claims against both FTX and its affiliate Alameda Research.
Following this settlement, the plan administrator received approval to monetize these claims through a third-party sale. The press release also indicates that BlockFi International creditors may need additional identity verification and KYC compliance in line with international standards.
The announcement follows BlockFi’s recent statement that it will begin repaying creditors in July, almost two years after the firm’s bankruptcy filing amid FTX’s collapse. The New Jersey-based company noted that distributions would be made “in batches in the coming months” via Coinbase, with eligible clients receiving notifications to their BlockFi account email.
However, non-U.S. clients will still be unable to receive funds due to regulatory constraints, with no specific timeline for these repayments. BlockFi filed for Chapter 11 protection in November 2022 following market turmoil and significant exposure to the FTX exchange.
