Unredacted paperwork mistakenly despatched to the chapter court docket point out that the now-defunct crypto lender Blockfi had greater than $1.2 billion tied up with FTX and Alameda Analysis. The unintentionally revealed documentation reveals that Blockfi’s publicity to the bankrupt crypto agency FTX was greater than what the corporate had beforehand disclosed.
Unredacted Paperwork Reveal Blockfi’s $1.2 Billion Publicity to FTX, Alameda Analysis
Evidently Blockfi had much more cash tied up with FTX and Alameda Analysis than what was initially advised by the agency. A CNBC report signifies that unredacted paperwork have been mistakenly despatched to the chapter court docket, revealing that Blockfi had $415.9 million related to FTX, and roughly $831.3 million in loans to Alameda Analysis.
The most recent Blockfi submitting reveals that $1.2 billion is allegedly tied up with each FTX and Alameda, each of which have filed for Chapter 11 chapter safety. When Blockfi’s chapter case began in New Jersey, legal professionals initially quoted the loans to Alameda as being round $671 million, and one other $355 million was stated to be locked on the FTX alternate. Blockfi paused withdrawals on Nov. 10, 2022, at some point earlier than FTX filed for chapter.
Two days earlier than the pause, Blockfi co-founder Flori Marquez told the crypto group that “Blockfi is an impartial enterprise entity” amid the FTX drama. She additional famous that Blockfi had a “$400 million line of credit score from [FTX US] (not FTX.com) and can stay an impartial entity till not less than July 2023.” Lower than a month later, Blockfi filed for Chapter 11 chapter safety within the state of New Jersey.
CNBC additional experiences that Blockfi has 125 workers members nonetheless on Blockfi’s payroll and a complete of $11.9 million will probably be collected on an annualized foundation. Moreover, 5 high Blockfi executives are nonetheless incomes $822,000 for the yr, in line with a presentation designed by M3 Companions. CNBC’s MacKenzie Sigalos reached out to Blockfi, however the firm “didn’t reply to a request for remark.”
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