BlockFi, a crypto lending company, has successfully sold its FTX claims, a significant step towards finalizing its bankruptcy process. The sale was completed at a premium to their face value, ensuring a near-term final distribution of 100% to all allowed customers and general unsecured creditors.
Mohsin Y. Meghji, BlockFi’s plan administrator, confirmed the transaction in a report to the United States Bankruptcy Court for the District of New Jersey.
In March 2024, BlockFi settled with FTX and Alameda Research, receiving $874.5 million in claims against them. This settlement allowed subsequent distributions to BlockFi customers based on anticipated FTX distributions.
The plan administrator also had the option to monetize the FTX claims through a third-party sale, which has now been realized. BlockFi’s platform is no longer active, with in-kind distributions facilitated through Coinbase.
The plan administrator determined that a sale of the FTX claims at a level that maximized customer returns was feasible, and the sale process concluded on July 10, 2024, with the highest and best bid acceptance.
