BlockFi announced the sale of FTX claims, enabling a near-term final distribution of 100% to all allowed customer and unsecured creditor claims. This marks a significant step since BlockFi filed for Chapter 11 protection in November 2022 due to its exposure to the FTX exchange.
The sale follows a March 2024 settlement with FTX, providing BlockFi with over $874 million in claims against FTX and Alameda Research. The plan administrator, Mohsin Y. Meghji, emphasized that this is the “final chapter” in the wind-down process, ensuring full recovery for customers and creditors.
Distributions will begin in July 2024 and will be made in batches via Coinbase, although non-U.S. clients will face delays due to regulatory constraints. This outcome was previously unimaginable and represents a significant recovery milestone in the crypto industry.
BlockFi’s successful claims sale offers a blueprint for managing substantial recoveries in the volatile crypto market, underscoring the importance of strategic asset liquidation.
