Documents sent mistakenly to the bankruptcy court reveal that the now-defunct crypto lender Blockfi had more than $1.2 Billion connected to FTX and Alameda Research. The previously undisclosed paperwork explain that the buzz around the failing crypto company FTX was bigger than it had originally showed.
Unredacted Files Show Blockfi’s $1.2 Billion Relationship To FTX, Alameda Research
It appears that Blockfi had more cash than it needed. This was not the case as the organization at first proposed. According to CNBC, the redacted documents were mistakenly sent to the bankruptcy court. Blockfi had $415.9 million associated with FTX and around $831.3 million in loans with Alameda Research.
The most recent documents show that $1.2 Billion is supposedly tied up to both FTX and Alameda. All these had filed for Chapter 11 bankruptcy protection. When the bankruptcy case began in New Jersey, lawyers first noted the loans. The total of $671 million was settled, and an additional $355 million is believed to be secured via the FTX exchange. On the day of withdrawals were stopped November 10, 2022, a day before FTX had filed for bankruptcy.
Two days prior to the break, the co-founder of Blockfi, Flori Márquez said in the crypto community that “Blockfi is an independent business entity” amidst the FTX drama. He further stated that Blockfi had a “$400 million credit line from [FTX US] (not FTX.com) can remain an independent entity up to the least July 2023.” It was less than a month later that Blockfi filed for Chapter 11 Bankruptcy Protection in the State of New Jersey.
More reports from CNBC say that Blockfi still has 125 employees. Blockfi’s payroll and salaries can rise to $11.9 million yearly. In addition, five top Blockfi Executives continue to earn $822,000 per year according to a presentation made by M3 Partners. CNBC’s MacKenzie Sigalos reached out to Blockfi, however, the company “did not respond to a request for comment.”
What do you make of this Blockfi disclosure? Please let us know of your thoughts in the comments section.
