BlockFi has announced the sale of FTX claims, enabling the near-final distribution of 100% of all permitted customer and unsecured creditor claims.
BlockFi’s plan administrator has announced the sale of FTX’s claims, paving the way for full recovery for clients and creditors. In a press release shared with crypto.news, BlockFi’s plan administrator, Mohsen Y. Meghji, noted that the sale of all claims against FTX represents the “final chapter” in the liquidation process.
“This transaction is the best possible outcome for BlockFi’s customers. The customer claims recovery and distribution timeline were unexpected when these cases were filed in November 2022.”
Meggi
The sale comes after a settlement reached in March 2024 with now-defunct cryptocurrency exchange FTX, which awarded BlockFi more than $874 million in claims against both FTX and its subsidiary Alameda Research.
Following this settlement, the plan administrator has obtained approval to monetize these claims through a third-party sale. The press release also notes that BlockFi International creditors may be required to undergo additional identity verification and KYC compliance in line with international standards.
The announcement comes on the heels of BlockFi’s recent statement that it will begin paying creditors in July, nearly two years after the company filed for bankruptcy amid the collapse of FTX. The New Jersey-based company said the distributions will be made “in batches over the coming months” via Coinbase, with eligible customers receiving email notifications to their BlockFi account.
However, customers outside the US will not be able to receive the funds due to regulatory restrictions, 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.