The non-operational crypto lending platform, BlockFi says it has finalized the sales of its FTX claims which commenced from June 24 to July 10. This is according to Mohsin Y. Meghji, BlockFi’s Plan Administrator and Managing Partner for M3 Partners. The claims were confirmed in a report to the U.S. Bankruptcy Court of New Jersey.
BlockFi Monetization Claims
Meghji note that the sales which heralds the final phase of closure for BlockFi’s customers will facilitate “near-term” distribution to customers that are eligible as well as unsecured creditor claims in fiat currency.
This is as all claims are now monetized at a premium to their face value.
Notably, in March, the trio of BlockFi, FTX and Alameda Research Estate had in principle agreed to an $874.5 million settlement. The lump sum agreed upon helped Meghji to schedule for the distribution to its creditors based on the projected value.
The once-bankrupt lending platform appreciated the patience of its customers and all who devoted time and effort to seeing it through. BlockFi’s Plan Administrator assured that the Final Customer Distribution process will kick off as soon as it is realistic.
Final Customer Distribution Process
As reported by BGEcrypto, the distribution of the monetized claims by BlockFi is in partnership with Coinbase. As per the arrangement, clients of BlockFi will still be able to access their crypto withdrawals if they have a valid Coinbase account. However, international creditors will be subjected to a “Know Your Customer” due diligence to verify their identity.
Meanwhile, all customers with fiat claims have to process it by utilizing Kroll and Digital Disbursements, which is the payment partner.
The BlockFi platform had stopped all withdrawals by its customers in the last quarter of 2022 and filed for Chapter 11 bankruptcy. In September 2023, the bankruptcy court approved BlockFi’s plan to repay its 10,000 creditors. Stakeholders hope the saga will end soon as distributions to customers continue.
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