FTX and BlockFi to Resume Claims Settlement

FTX and BlockFi have received the approval to resume
proceedings for the negotiation of claims settlements in the aftermath of
BlockFi’s bankruptcy filing last November. This step allows FTX to present
counterclaims and arguments, paving the way for a potential between the two
bankrupt crypto firms.

BlockFi filed for bankruptcy in November 2022,
citing the repercussions of FTX’s sudden collapse as a significant factor.
However, after the court paused the proceedings, BlockFi was left with
approximately $355 million frozen on FTX’s platform and an additional $671
million owed by FTX’s sister company, Alameda Research, Coindesk reported.

US bankruptcy judge Michael Kaplan modified the
order on November 13, allowing FTX’s debtors to engage in discussions regarding
claims settlement
Settlement

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2
Read this Term. This permitted FTX to present defenses, counterclaims, and
setoffs concerning BlockFi’s claims in the ongoing bankruptcy proceedings.