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Unredacted documents mistakenly sent to bankruptcy court indicate that now-defunct crypto lender Blockfi had more than $1.2 billion tied to FTX and Alameda Research. The accidentally revealed documentation shows that Blockfi’s exposure to bankrupt crypto firm FTX was greater than the company had previously disclosed.

Unredacted Documents Reveal Blockfi’s $1.2 Billion Exposure to FTX, Alameda Research

It appears that Blockfi has a lot more money tied to FTX and Alameda Research than was originally suggested by the company. A CNBC report says unredacted documents were mistakenly sent to the bankruptcy court revealing that Blockfi had $415.9 million tied to FTX and approximately $831.3 million in loans to Alameda Research.

Latest Blockfi filing shows $1.2 billion believed to be tied to both FTX and Alameda, both of which have deposit for Chapter 11 bankruptcy protection. When Blockfi’s bankruptcy case began in New Jersey, the attorneys behind cited loans to Alameda amounted to approximately $671 million, and another $355 million would be locked on the FTX exchange. Blockfi on break withdrawals on November 10, 2022, a day before FTX filed for bankruptcy.

Two days before the break, Blockfi co-founder Flori Marquez Told the crypto community that “Blockfi is an independent business entity” amid the FTX drama. She further noted that Blockfi has a “$400 million line of credit from [FTX US] (not FTX.com) and will remain an independent entity until at least July 2023. Less than a month later, Blockfi deposit for Chapter 11 bankruptcy protection in the State of New Jersey.

CNBC further reports that Blockfi still has 125 staff members on Blockfi’s payroll and a total of $11.9 million will be raised on an annualized basis. Additionally, five top Blockfi executives still earn $822,000 for the year, according to a presentation designed by M3 Partners. CNBC’s MacKenzie Sigalos reached out to Blockfi, but the company “did not respond to a request for comment.”

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What do you think is the impact of this Blockfi revelation? Let us know your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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