FTX and BlockFi Reach $874.5 Million Settlement Agreement

The tentative deal, awaiting court approval, aims to resolve disputes stemming from the 2022 collapses and could significantly benefit BlockFi's customers.

BlockFi and FTX have reached a tentative agreement to settle all litigation and disputes, with BlockFi set to receive a total of $874.5 million in claims against FTX and Alameda Research.
The settlement includes a $250 million secured claim, ensuring priority payment to BlockFi once FTX's reorganization plan is approved by creditors.
BlockFi customers are expected to receive full value for their claims as long as FTX meets its distribution goals, potentially allowing for a second interim distribution in the near term.
FTX will waive all settlement claims against BlockFi, which in turn will support and vote in favor of FTX's reorganization plan.
The agreement marks a significant step towards resolving the legal battles following the 2022 market crash that led to the collapse of both companies.