BlockFi : financial documents reveal platform has $1.2 billion in exposure
Crypto winter

BlockFi : financial documents reveal platform has $1.2 billion in exposure

Mistakenly released financial documents reveal that bankrupt crypto lending platform BlockFi has $1.2 billion in exposure to the also-bankrupt crypto exchange FTX and its subsidiary Alameda Research, CNBC reports.

In detail, accounting records show that BlockFi has $415.9 million in assets tied to FTX and $831.3 million in loans to Alameda Research. The total of these recently disclosed figures is about 20 percent higher than the sum of the amounts BlockFi’s attorney, Joshua Sussberg, reported at the first hearing in the company’s bankruptcy proceedings on Nov. 29. BlockFi’s funds tied up in FTX would have amounted to $355 million at the time, and Alameda is owed $680 million in outstanding loans from the crypto lending company.

In financial trouble for months, BlockFi had signed a recovery agreement with FTX in July 2022, which provided a $400 million revolving credit facility.
Following the collapse of the FTX empire in late 2022, crypto lending platform BlockFi had been forced to file for bankruptcy last November.

Unlike Voyager Digital, which will eventually be taken over by the giant Binance, BlockFi is still fighting for its financial survival. The revelation of this billion-dollar-plus exposure to FTX and Alameda gives an idea of the financial hole to be filled in a potential takeover of the crypto lending platform.

Not to mention the $100 million BlockFi agreed to pay to the U.S. regulator, the Securities and Exchange Commission (SEC), in order to end the lawsuit filed against it by the U.S. administration.

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