Unredacted Financial Documents Show Blockfi’s $1.2 Billion Connection With FTX, Alameda Research 

Unredacted documents mistakenly sent to the bankruptcy tribunal bespeak that the now-defunct crypto lender Blockfi had much than $1.2 cardinal tied up with FTX and Alameda Research. The accidentally revealed documentation shows that Blockfi’s vulnerability to the bankrupt crypto steadfast FTX was much than what the institution had antecedently disclosed.

Unredacted Documents Reveal Blockfi’s $1.2 Billion Exposure to FTX, Alameda Research

It seems that Blockfi had a batch much wealth tied up with FTX and Alameda Research than what was primitively suggested by the firm. A CNBC report indicates that unredacted documents were mistakenly sent to the bankruptcy court, revealing that Blockfi had $415.9 cardinal connected to FTX, and astir $831.3 cardinal successful loans to Alameda Research.

The latest Blockfi filing shows that $1.2 cardinal is allegedly tied up with some FTX and Alameda, some of which person filed for Chapter 11 bankruptcy protection. When Blockfi’s bankruptcy lawsuit started successful New Jersey, lawyers primitively quoted the loans to Alameda arsenic being astir $671 million, and different $355 cardinal was said to beryllium locked connected the FTX exchange. Blockfi paused withdrawals connected Nov. 10, 2022, 1 time earlier FTX filed for bankruptcy.

Two days earlier the pause, Blockfi co-founder Flori Marquez told the crypto assemblage that “Blockfi is an autarkic concern entity” amid the FTX drama. She further noted that Blockfi had a “$400 cardinal enactment of recognition from [FTX US] (not FTX.com) and volition stay an autarkic entity until astatine slightest July 2023.” Less than a period later, Blockfi filed for Chapter 11 bankruptcy extortion successful the authorities of New Jersey.

CNBC further reports that Blockfi has 125 unit members inactive connected Blockfi’s payroll and a full of $11.9 cardinal volition beryllium collected connected an annualized basis. Furthermore, 5 apical Blockfi executives are inactive earning $822,000 for the year, according to a presumption designed by M3 Partners. CNBC’s MacKenzie Sigalos reached retired to Blockfi, but the institution “did not respond to a petition for comment.”

What bash you deliberation is the interaction of this Blockfi revelation? Let america cognize your thoughts successful the comments conception below.

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