According to a recent court filing, BlockFi, a crypto lending platform that declared bankruptcy in 2022, has reached an "in principle" agreement with FTX and Alameda Research for a settlement of USD 874.5 million.

Under the terms of the agreement, BlockFi will recover USD 874.5 million in claims against FTX and Alameda Research, USD 250 million of which will be treated as a secured claim. This enables the company to receive priority repayment after FTX’s plan to end bankruptcy is approved by its creditors.

Upon approval by a judge, the deal will also see FTX drop its claims against BlockFi. 

Analyst QuickTake: This news comes just a month after Celsius , another crypto lender, announced its recovery from bankruptcy after a lengthy process—during which it took several steps to mitigate damage. Having declared bankruptcy around the same time as its competitor, Blockfi was also heavily involved with FTX before its collapse. In 2022 , the company secured a USD 400 million line of credit (largely viewed as a bailout at the time) and entered an acquisition agreement with FTX. With FTX also making moves to end bankruptcy , this development will finally enable the company to begin making its second interim distribution to its creditors.