In a pivotal development, the administrator of beleaguered crypto lender BlockFi has put forth a comprehensive strategy to ensure final restitution for all eligible customers and unsecured creditors, as revealed in a recent announcement.

The administrator’s report, submitted to the U.S. Bankruptcy Court for the District of New Jersey, disclosed the successful execution of a significant transaction. This maneuver enabled the monetization of $874.5 million in claims against the defunct exchange FTX, at a valuation significantly surpassing their nominal worth.

“This transaction signifies the concluding chapter of our wind-down and represents the most favorable outcome for BlockFi’s clientele,” remarked Mohsin Y. Meghji, Plan Administrator of BlockFi Inc. and Managing Partner of M3 Partners.

“The extent of these recoveries on customer claims and the expedience with which they will be distributed were inconceivable when these proceedings commenced in November 2022. These achievements, realized through relentless dedication by numerous stakeholders, are indeed exceptional. We are committed to initiating the Final Customer Distribution as expeditiously as feasibly possible,” Meghji concluded.

BlockFi was one of the earliest casualties of the fallout from the FTX collapse in early November 2022. The crypto lender filed for Chapter 11 bankruptcy protection on November 28, 2022, mere weeks after suspending withdrawals from its platform. Subsequently, BlockFi sought court authorization to release customer funds trapped on the platform.

Recently, BlockFi announced it would initiate the first interim cryptocurrency distributions via Coinbase (COIN) in July 2024, marking a significant step towards fulfilling its obligations to creditors and clients alike.