Unredacted BlockFi financials show over $1.2B link to FTX, Alameda News ▸ US ▸ FTX ▸ Bankruptcy
Unredacted BlockFi financials show over $1.2B link to FTX, Alameda
The uncensored documents show that nearly half of BlockFi's unadjusted assets are linked to FTX and Alameda — more than previously disclosed.
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Updated: Jan. 25, 2023 at 6:40 am UTC
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BlockFi had over $1.2 billion in assets linked to bankrupt FTX and Alameda Research, according to financial documents mistakenly uploaded without redactions on Jan. 24.
The documents, which were previously redacted, revealed that BlockFi had greater exposure to FTX than previously disclosed, according to a CNBC report.
As of Jan. 14, BlockFi has $415.9 million worth of assets tied up on FTX and had loaned $831.3 million to Alameda, the documents showed. This puts the crypto lender’s total assets linked to FTX and Alameda at over $1.2 billion.
BlockFi lawyers had previously stated that the lender had $355 million worth of assets stuck on FTX. The lawyers had also valued the loan to Alameda at $671 million. BlockFi’s total exposure to FTX and Alameda, therefore, stood at just over $1 billion, according to previous disclosures.
BlockFi filed for Chapter 11 bankruptcy weeks after the FTX and Alameda meltdown. The crypto lender had been struggling since the collapse of hedge fund Three Arrows Capital in July. BlockFi had managed to secure a lifeline from FTX in the form of a $400 million credit facility.
BlockFi had also extended FTX the option to acquire the firm for $240 million, but the deal fell apart when FTX filed for bankruptcy.
Details about BlockFi users
The uncensored documents also revealed that the lender had 662,427 users. Of this, around 73% of users had balances of less than $1,000.
Between May and November 2022, these users had a cumulative trading volume of $67.7 million while the lender’s total trading volume stood at $1.17 billion. BlockFi earned over $14 million in trading revenue over the period, at an average of $21 in revenue per user, the documents showed.
Total assets
According to the documents, BlockFi had $302.1 million in cash and digital assets worth $366.7 million. The lender’s total unadjusted assets are worth around $2.7 billion, with nearly half linked to FTX and Alameda, the documents showed.
The defunct crypto lender has adjusted the value of its loan to Alameda and its assets on FTX to $0. After all adjustments, its total assets are worth $1.3 billion, the documents noted. Of this, just over half — or $668.8 million — is “Liquid / To Be Distributed.”
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Monika Ghosh
In 2020, Monika immersed herself in crypto, maintaining skepticism yet firmly believing blockchain could address key issues like financial disparity and transparency. A book-lover, she's also a passionate food enthusiast.
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BlockFi
BlockFi is a defunct cryptocurrency lender company which is currently in bankruptcy proceedings.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Three Arrows Capital
Three Arrows Capital (3AC), a Singapore-based crypto hedge fund, collapsed due to poor risk management, recklessness in dealing with business partners and a significant portion of greed.