On March 6, 2024, the bankrupt crypto lender BlockFi announced an “in principle” settlement with FTX and Alameda Research, reaching a total of $874.5 million in claims against the two companies. The settlement, which is subject to approval by U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware, will resolve BlockFi’s claims against FTX, which were estimated to be approximately a billion dollars.


BlockFi, a cryptocurrency lender, filed for Chapter 11 bankruptcy protection on November 28, 2022, citing exposure to the shock collapse of FTX earlier that month. The two companies had sued each other in 2023, with BlockFi claiming that FTX owed it over $1 billion, which came from a $400 million line of credit and nearly $900 million lent to Alameda Research1.

Settlement Details

Under the proposed settlement, FTX will pay up to $874.5 million to BlockFi, with $185.2 million representing the value of BlockFi customer assets held on the FTX exchange and $689.3 million for the loans received from Alameda Research. $250 million of the total sum will be treated as a “secured claim,” prioritizing payment to BlockFi after FTX emerges from bankruptcy. The remainder of the settlement is contingent on FTX’s ability to repay its own customers and other creditors.

Impact on the Companies

The settlement is a key part of BlockFi’s bankruptcy and reorganization plan, which could lead to full value recovery for BlockFi’s customers. FTX will drop its claims against BlockFi, allowing BlockFi’s remaining claims to be paid out like other similar claims under FTX’s plan. The settlement represents an excellent outcome for BlockFi and its customers, providing a better result than anticipated even on the effective date of the plan.


The “in principle” settlement between BlockFi, FTX, and Alameda Research marks a significant step in the resolution of the disputes between the companies. The settlement, which is subject to approval by the U.S. Bankruptcy Judge, will resolve BlockFi’s claims against FTX and will also see FTX waive millions of dollars of avoidance claims and other counterclaims against BlockFi1. This settlement is expected to bring BlockFi closer to full recovery for its customers, marking a positive development in the ongoing bankruptcy proceedings. 

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