Bankrupt cryptocurrency lender BlockFi has reached a $874.5 million in-principle settlement with FTX and Alameda Research estates, according to a Wednesday bankruptcy court filing. 

Upon court approval of the settlement, BlockFi — which was hit by the collapse of FTX in 2022 and filed for Chapter 11 bankruptcy soon after — will receive a customer claim against FTX worth $185.2 million and a claim of $689.3 million from FTX’s sister trading firm Alameda Research, according to the filing. 

BlockFi customers are expected to receive the claims at full value, as long as FTX meets its distribution goals, the filing said.

Out of the $874.5 million, $250 million will be a secured claim, for which there is collateral to prioritize the payment to BlockFi after FTX’s reorganization plan …