BlockFi Financials Reveal $1.2 Billion Exposure to Alameda Research and FTX

BlockFi Financials Reveal $1.2 Billion Exposure to Alameda Research and FTX

The financial report revealed that BlockFi's exposure to FTX and Alameda Research is more significant than the company initially disclosed.

BlockFi, a now-bankrupt crypto lender established in 2017, has accidentally shared its uncensored financials, which revealed massive exposure to Sam Bankman-Fried’s Alameda Research and FTX.

According to the CNBC report shared on January 24th, the documents revealed that BlockFi had more than $1.2 billion in assets connected with Sam Bankman-Fried’s firms.

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As of January 14th, BlockFi reportedly had $415.9 million worth of assets tied to FTX and $831.3 million “in loans to Alameda.”

It is worth noting that BlockFi filed for Chapter 11 bankruptcy at the end of November. At that time, the crypto lender claimed it had “significant exposure to FTX and associated corporate entities.”

During the bankruptcy proceedings, BlockFi lawyers revealed that the company's loan to Alameda Research is worth around $671 million. Moreover, crypto lender’s lawyers claimed that due to FTX's collapse, there are approximately $355 million “in digital assets frozen on the FTX platform.”

It can be assumed that the recent spike in crypto prices has increased the value of BlockFi holdings.

BlockFi's financial report was created by M3 Partners, which functions as “an advisor to the creditor committee.” CNBC reported that M3 Partners' lawyer confirmed that the financial presentation was uploaded accidentally. However, the lawyer refused to comment on the matter.

BlockFi’s financial report also revealed that before filing for bankruptcy, the crypto lender had over 660,000 customers. From May to November 2022, BlockFi’s users “had a cumulative trading volume of $67.7 million.” Half a year before filing for bankruptcy, BlockFi reportedly made over $14 million in trading revenue.

Nevertheless, the financial presentation revealed that BlockFi has “unadjusted assets worth” approximately $2.7 billion, with almost half of them linked to infamous crypto firms Alameda Research and FTX.

BlockFi has recently been at the center of crypto-related news reports. Just the other day, people familiar with the matter revealed that a crypto lender is looking to sell Bitcoin (BTC) mining machine-backed loans.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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