Crypto lending company BlockFi, which filed for bankruptcy in 2022 following the collapse of crypto exchange FTX, announced on Monday the successful sale of its FTX ClaimsThis marks another step toward completing BlockFi’s bankruptcy process, allowing for the final distribution of funds to creditors.
According to Monday announcementThe sale of FTX claims was completed at a “substantial” premium to their face value, which the plan administrator said is intended to ensure a “near-term” final distribution of 100% to all permitted customers and general unsecured creditors.
‘Best possible outcome for customers’
Mohsin Y. Meghji, BlockFi’s plan administrator, disclosed in the announcement that he had filed a report with the U.S. Bankruptcy Court for the District of New Jersey confirming the completion of the transaction, which settled all claims against FTX.
Meghji believes this is the “best possible outcome” for BlockFi customers, even stating that it exceeds expectations from when the bankruptcy The first cases were filed in November 2022. Meghji further said:
…These results, achieved through tireless efforts of various parties, are remarkable. We plan to start Final Customer Distribution as soon as reasonably possible
If reported According to Bitcoinist, in March 2024, BlockFi settled with FTX and the crypto exchange’s failed trading arm, Alameda Research, resulting in BlockFi receiving $874.5 million in claims against them.
This settlement cleared the way for subsequent distributions to BlockFi customers based on anticipated FTX distributions. A key aspect of the settlement was the plan administrator’s option to monetize the FTX claims through a third-party sale.
BlockFi Platform Inactive, Refund Demanded
Just one month ago, in June, the plan administrator determined that a sale of the FTX claims at a level that maximized proceeds for customers and generated significant recoveries for subordinated creditors was feasible.
The sale process began on June 24, 2024 and was completed on July 10, 2024, with the highest and best offer acceptance. Interestingly, the purchase price exceeded the face value of the FTX Claims, providing significant value to BlockFi and its creditors.
It was also announced that BlockFi’s platform is no longer active and that all “in-kind” distributions are being facilitated through the plan administrator’s partnership with Coinbase. In the wake of this, users have reported receiving notifications from the US exchange indicating that their identification details have been successfully matched with BlockFi’s data.
Despite the sense of progress in the bankrupt crypto lender’s bankruptcy proceedings, Bitcoinist has also reported On July 19, many customers expressed their excitement and saw the refund developments as positive news. However, some remained skeptical, emphasizing that they would like to see the funds deposited into their Coinbase account.
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