Redacted documents mistakenly sent to bankruptcy court indicate that now-defunct crypto lender Blockfi had more than $1.2 billion tied to FTX and Alameda Research. Accidentally disclosed documentation shows that Blockfi’s exposure to bankrupt crypto firm FTX was higher than the firm had previously disclosed.
Unredacted Documents Reveal Blockfi’s $1.2 Billion Exposure To FTX, Alameda Research
It appears that Blockfi had a lot more money invested in FTX and Alameda Research than the firm originally suggested. a CNBC report indicates that the redacted documents were mistakenly sent to the bankruptcy court, revealing that Blockfi had $415.9 million connected to FTX and approximately $831.3 million in loans to Alameda Research.
Blockfi’s latest filing shows that $1.2 billion is allegedly tied to both FTX and Alameda, both of which filed for Chapter 11 bankruptcy protection. When Blockfi’s New Jersey bankruptcy case began, attorneys originally aforementioned Loans to Alameda were around $671 million, and another $355 million was said to be locked up on the FTX exchange. Blockfi stopped withdrawals on November 10, 2022, one day before FTX filed for bankruptcy.
Two days before the break, the co-founder of Blockfi, Flori Márquez saying the crypto community that “Blockfi is an independent business entity” amid the FTX drama. He further noted that Blockfi had a “$400 million credit facility from (FTX US) (not FTX.com) and will remain an independent entity until at least July 2023.” Less than a month later, Blockfi filed for Chapter 11 bankruptcy protection in the state of New Jersey.
CNBC further reports that Blockfi has 125 staff members still on Blockfi’s payroll and will raise a total of $11.9 million on an annual basis. In addition, five top Blockfi executives continue to earn $822,000 a year, according to a presentation designed by M3 Partners. CNBC’s MacKenzie Sigalos reached out to Blockfi, but the company “did not respond to a request for comment.”
What do you think is the impact of this Blockfi disclosure? Let us know your thoughts in the comments section below.
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