BlockFi seals $875M settlement with Sam Bankman-Fried’s FTX, Alameda Research

Bankrupt cryptocurrency lender BlockFi has reached a $874.5 million in-principle settlement with FTX and Alameda Research estates, according to a Wednesday bankruptcy court filing.

The settlement is subject to approval by U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware.

FTX vs. BlockFi Case History

BlockFi and FTX had sued each other in 2023, seeking to recover money they had loaned each other before they both went bankrupt in November 2022. Under the new settlement, FTX agreed to prioritize a $250 million payment to BlockFi, and the remainder of the settlement is contingent on its efforts to repay its own customers in bankruptcy.