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
It appears that evidently Blockfi had much more cash tied up with FTX and Alameda Analysis than what was initially urged by the agency. A CNBC report signifies that unredacted paperwork had been mistakenly despatched to the chapter court docket, revealing that Blockfi had $415.9 million linked to FTX, and roughly $831.3 million in loans to Alameda Analysis.
The newest 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 mentioned to be locked on the FTX alternate. Blockfi paused withdrawals on Nov. 10, 2022, someday earlier than FTX filed for chapter.
Two days earlier than the pause, Blockfi co-founder Flori Marquez told the crypto neighborhood that “Blockfi is an unbiased 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 unbiased entity till at the least July 2023.” Lower than a month later, Blockfi filed for Chapter 11 chapter safety within the state of New Jersey.
CNBC additional studies that Blockfi has 125 workers members nonetheless on Blockfi’s payroll and a complete of $11.9 million will likely be collected on an annualized foundation. Moreover, 5 prime Blockfi executives are nonetheless incomes $822,000 for the 12 months, 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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