when

Partner

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/blockfi-sells-ftx-claims-at-premium" data-wpel-link="internal" rel="noopener noreferrer nofollow">BlockFi Sells FTX Claims at Premium</a><br></p>
<p style="text-align: justify">BlockFi, a now-defunct crypto lending firm, recently announced the sale of its FTX claims at a substantial premium over their nominal values. This development is a significant step in BlockFi’s bankruptcy process, aiming to ensure the full repayment of eligible customer and unsecured creditor claims. The successful transaction signals that BlockFi’s bankruptcy proceedings are nearing their conclusion.</p>
<h2 id="what-did-the-court-hear">What Did the Court Hear?</h2>
<p style="text-align: justify">Mohsin Y. Meghji, BlockFi’s plan administrator and Managing Partner at M3 Partners, informed the U.S. Bankruptcy Court for the District of New Jersey about the sale. This process, initiated on June 24 and concluded on July 10, resulted in an offer significantly higher than the nominal claim values. The details of the third party involved remain undisclosed, but this sale enables an imminent final distribution to BlockFi’s creditors.</p>
<h2 id="when-will-distributions-start">When Will Distributions Start?</h2>
<p style="text-align: justify">BlockFi agreed to an $874.5 million deal with FTX and Alameda Research estates in March. The premium from selling FTX claims ensures 100% repayment in fiat currency to eligible customers and general unsecured creditors. This outcome is considered optimal for BlockFi’s clients. The final distribution process is set to begin soon, though an exact date hasn’t been established.</p>
<h2 id="key-insights-for-stakeholders">Key Insights for Stakeholders</h2>
<p style="text-align: justify">Subsequent distributions will occur in batches over several months through Coinbase for crypto assets, while fiat claims will be processed by Kroll and Digital Disbursements. Here are essential points of interest for BlockFi stakeholders:</p>
<ul>
 <li>Non-U.S. customers require additional verification, which may delay funds.</li>
 <li>In-kind crypto distributions are slated to start in July.</li>
 <li>Fiat distributions will be handled by specialized payment processors.</li>
</ul>
<p style="text-align: justify">BlockFi’s bankruptcy saga began in November 2022 when it paused customer withdrawals and filed for Chapter 11 bankruptcy protection. In September 2023, the bankruptcy court approved its plan to repay 10,000 creditors. BlockFi had operated as a centralized lending entity, offering interest-bearing deposit accounts and lending user deposits within the crypto <a href="https://newslinker.co/category/science/space/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">space</a>.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/blockfi-sells-ftx-claims-at-premium" data-wpel-link="internal" rel="noopener noreferrer nofollow">BlockFi Sells FTX Claims at Premium</a></h5>

BlockFi Sells FTX Claims at Premium

Table of Contents

BH NEWS

Other articles published on Jul 23, 2024

Worldcoin Dismisses Insider Trading Allegations Amid Token Surge

India Keeps Crypto Tax Unchanged After 2024 Budget Meet

SEC Gives the Green Signal: Ethereum ETFs Go Live Today

Marathon Digital Pays $139 Million Fine In Contract Breach, MARA Stock Tanks 2.5%

Why PENDLE’s Price Might Surge Beyond $20 This Cycle

TON Foundation Partners With Mocaverse From Animoca

Join our free newsletter for daily crypto updates!