Troubled crypto lending firm, BlockFi has confirmed the sale of its FTX claims. In a statement, BlockFi said it has reported the sale to the States Bankruptcy Court for the District of New Jersey as its bankruptcy process nears completion.
In the statement, BlockFi plan administrator and M3 partners Managing partner Moshin Y Meghji confirmed that the sale process began on June 24 and ended on July 10. During the process, the highest and best bid was determined through a substantial premium to their face value, and financed by an undisclosed third party.
BlockFi reaches $874 million settlement agreement with FTX/Alameda Research estates
Last March, BlockFi reached a $874.5 million in principle settlement agreement with FTX and Alameda Research estates in March. This development empowers the plan administrator to proceed with planning subsequent distribution to BlockFi creditors based on the determined value. Similarly, the sale will also ensure a near-term final distribution of 100% of eligible customer and general unsecured creditor claims in fiat terms.
Meghji noted that the transaction marks the final chapter in the wind-down of BlockFi and constitute the most favorable outcome for its customer. He further that the firm plans to commence the distribution process as soon as possible.
Before reaching an agreement to sell its FTX claims, earlier reports by crypto trader, Ran Neuner revealed that BlockFi held more than $600 million loan with the defunct cryptocurrency exchange. The loan, at that time, exposed the lapses in the FTX/Alameda balance sheet. Similarly, prior to the loan report, BlockFi entered into an agreement with FTX to acquire the exchange for $240 million though the deal didn’t materialize.
FTX settles with CFTC
Meanwhile, FTX recently reached an agreement with the United States Commodities Future Trading Commission (CFTC) to pay $12.7 billion in settlement. As revealed, the $12.7 billion settlement covers $8.7 billion for restitution and $4 billion for disgorgement. Similarly, the FTX and CFTC attorney revealed that the agreement was a vital and valuable component of the debtor’s proposed Chapter 11 reorganization plan.
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