The two companies reach an ‘in principle’ agreement worth $874.5 million to resolve their legal divergences: the details.
According to a document filed in court yesterday, FTX has agreed to compensate BlockFi with an amount of $874.5 million and to waive any claims against the now-bankrupt lending company. The approval of the agreement awaits the decision of bankruptcy judge John Dorsey of the State of Delaware.
The amount of $874.5 million includes a claim of $185.2 million against FTX.com, related to the value of BlockFi’s customers’ digital assets held on the exchange, and a claim of $689.3 million against Alameda Research for loans received by the lending company.
The principle of the agreement stipulates that $250 million of the total amount be considered a “secured claim,” which will prioritize compensation to BlockFi once FTX emerges from bankruptcy. The remaining amount will be subject to FTX’s ability to repay its own customers and other creditors first.
BlockFi’s condition
On November 28th, 2022, BlockFi filed for bankruptcy under Chapter 11, citing exposure to the collapse of the FTX exchange as the main cause. In 2023, the two companies sued each other: BlockFi claimed a sum of $1.3 billion resulting from a $400 million line of credit and nearly $900 million lent to Alameda Research, while FTX’s American division claimed a credit of $275 million against BlockFi.
Some estimates indicate that BlockFi owes up to $10 billion to over 100,000 creditors, including $1 billion to its three largest creditors and $220 million to the failed crypto hedge fund Three Arrows Capital.
