Unedited documents accidentally sent to the bankruptcy court show that now defunct crypto lender Blockfi had over $1.2 billion tied to FTX and Alameda Research. The accidentally revealed documents show that Blockfi’s exposure to bankrupt crypto firm FTX is greater than what the company previously disclosed.
Unredacted documents reveal Blockfi’s $1.2 billion exposure to FTX, Alameda Research
Blockfi appears to have tied up more money in FTX and Alameda Research than the company originally suggested; CNBC reportsthat unredacted documents were mistakenly sent to the bankruptcy court, revealing Blockfi’s exposure to FTX for $415.9 million and Alameda Research for approximately $831.3 million.
Blockfi’s latest filing states that $1.2 billion is tied to both FTX and Alameda, and both companies have filed for Chapter 11 bankruptcy protection When Blockfi’s bankruptcy case began in New Jersey, its lawyers originallyciting loans to Alameda of approximately $671 millionand another $355 million was said to be locked up in the FTX exchange; Blockfi suspended withdrawals on November 10, 2022, one day before the FTX filed for bankruptcy.
Two days before the pause, Blockfi co-founder Flori Marquez told the crypto communityin the FTX drama that “Blockfi is an independent entity.” She further noted that Blockfi has a $400 million line of credit 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 New Jersey.
CNBC further reported that Blockfi has 125 staff members remaining and will collect a total of $11.9 million on an annualized basis. Additionally, according to a presentation designed by M3 Partners, Blockfi’s five top executives still earn $822,000 per year, and CNBC’s Mackenzie Sigalos reached out to Blockfi, but the company “did not respond to a request for comment. The company did not respond.”
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