FTX reaches settlement with BlockFi, may pay up to $874 million

Bankrupt crypto firms FTX and BlockFi have reached a settlement over their disputes from the 2022 collapses, with FTX agreeing to pay BlockFi up to $874 million. The agreement, subject to court approval, prioritizes a $250 million payment to BlockFi, with the remaining amount contingent on FTX's efforts to repay its own customers in bankruptcy. The companies had a close relationship, with BlockFi providing loans to FTX's hedge fund and seeking rescue financing from FTX during market volatility. FTX could pay BlockFi up to $689 million for Alamexa loans, but only $250 million is guaranteed, pending FTX's repayment to its customers and creditors. Additionally, FTX will pay BlockFi $185.3 million for funds held in FTX trading accounts during the collapse. BlockFi, in turn, will drop its lawsuit over Robinhood shares allegedly pledged as collateral for loans to Alameda. The settlement comes amid FTX founder Sam Bankman-Fried's conviction for stealing from customers, with sentencing pending.