– Unredacted documents mistakenly sent to the bankruptcy court indicate that the now-defunct crypto lender Blockfi had more than $1.2 billion tied up with FTX and Alameda Research.
– The documents show that Blockfi’s exposure to the bankrupt crypto firm FTX was more than what the company had previously disclosed.
– Blockfi paused withdrawals on Nov. 10, 2022, one day before FTX filed for bankruptcy.
Blockfi, a crypto lender that was formerly operating in the crypto industry, had its financial documents revealed in a bankruptcy court. It was revealed that Blockfi had more than $1.2 billion tied up with FTX and Alameda Research, which was more than what the company had initially disclosed.
The documents were sent to the bankruptcy court by mistake, and the data revealed that Blockfi had $415.9 million connected to FTX and roughly $831.3 million in loans to Alameda Research. These figures add up to a total of $1.2 billion, which is the amount that Blockfi had allegedly tied up with both FTX and Alameda Research. This money was put in place before both companies filed for Chapter 11 bankruptcy protection.
Prior to the bankruptcy filing, Blockfi co-founder Flori Marquez had informed the crypto community that Blockfi had a line of credit from FTX US, and that the company would remain independent until at least July 2023. She had also stated that the amount of money that Blockfi had with FTX was $400 million. However, the unredacted documents show that the amount was actually much higher.
On November 10th, 2022, Blockfi paused withdrawals, one day before FTX filed for bankruptcy. This indicates that Blockfi was aware of the financial troubles that FTX was facing and had taken steps to protect its own finances.
Subsequently, Blockfi filed for Chapter 11 bankruptcy protection in the state of New Jersey. Currently, the firm still has 125 staff members, and it is unclear what will happen to the money that is tied up with both FTX and Alameda Research.