Categories
Audio Sources - Full Text Articles

Bankrupt crypto lender BlockFi accidentally reveals it had over $1.2 billion in assets tied up with FTX

Advertisements | Advertising at The News And Times | advertising-newsandtimes.com | WE CONNECT!
Listen to this article
In this photo illustration, the cryptocurrency exchange trading platform Blockfi logo is seen on an Android mobile device screen with the currency of the United States dollar icon.BlockFi filed for bankruptcy last November, citing heavy exposure to FTX.

Chukrut Budrul/ SOPA Images/ LightRocket/ Getty Images

  • Bankrupt crypto lender BlockFi’s secret financials revealed linkages of over $1.2 billion to FTX. 
  • The disclosure was accidentally revealed in unredacted financial documents, per CNBC. 
  • BlockFi filed for bankruptcy last November, citing heavy exposure to Sam Bankman-Fried’s collapsed exchange. 

Bankrupt crypto lender BlockFi accidentally revealed it had over $1.2 billion in assets tied to FTX and its sister trading arm Alameda Research, according to CNBC

The redacted sections include “trade secret[s] or confidential research, development, or commercial information,” one of the filings show.

The findings show BlockFi’s exposure to Sam Bankman-Fried’s collapsed crypto empire was greater than previous disclosures had indicated.

As of January 14, unredacted filings show BlockFi had $415.9 million worth of assets linked to FTX and $831.3 million tied to Alameda. However, lawyers representing BlockFi previously said the firm had $355 million in digital assets stuck on FTX, and loaned $671 million to Alameda.

BlockFi did not immediately respond to Insider’s request for comment. 

The company has been on a rocky road in the past year. It filed for Chapter 11 bankruptcy protection last November, citing significant exposure to FTX and the now-defunct crypto hedge fund Three Arrows Capital. The crypto lender has over 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.

It’s entanglement with FTX began last July, when the company inked a deal with Bankman-Fried’s exchange to receive a $400 million revolving credit line as part of a rescue deal. But that deal crumbled after FTX suffered its own liquidity crisis and went bust.  

As BlockFi undergoes bankruptcy proceedings, it has sought court approval to pay bonuses to employees. It told the court last November that holding onto key members of staff was critical to its efforts to reorganize the company.

Read the original article on Business Insider
Advertisements | Advertising at The News And Times | advertising-newsandtimes.com | WE CONNECT!