BlockFi $1.2B Exposure to FTX, Alameda
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An editor at Coincrop
25 Jan 2023 | 5 min read
ewly revealed, uncensored BlockFi financials uncover a connection worth over $1.2B to FTX and Alameda - surpassing any previously declared amount. Astonishingly, nearly half of the company's total funds are related to these two groups!
On January 24th, a series of financial documents with no redactions were mistakenly uploaded, revealing BlockFi had more than $1.2 billion in assets connected to FTX and Alameda Research -two companies that are now bankrupt.
A CNBC report uncovered that BlockFi had a larger exposure to FTX than was previously specified, after the documents were unredacted.
By Jan. 14th, BlockFi had loaned a staggering $831.3 million to Alameda and held over $415.9 million in assets at FTX - making their total combined worth exceed the astonishing amount of $1.2 billion!
BlockFi attorneys had recently declared that the creditor held $355 million in assets stalled on FTX. Moreover, they approximated the loan to Alameda at an amount of $671 million. In sum, BlockFi's entire exposure with both FTX and Alameda was estimated to be just over one billion dollars, as previously asserted.
Weeks after the FTX and Alameda debacle, BlockFi was forced to file for Chapter 11 bankruptcy. They had been battling financial instability since Three Arrows Capital's collapse in July and were only able to remain afloat thanks to a generous $400 million credit agreement granted by FTX.
BlockFi had a $240 million buyout offer on the table from FTX, but that plan was foiled when FTX filed for bankruptcy.
The confidential documents divulged that BlockFi had 662,427 customers. Of these, a whopping 73% of users had a balance of under $1,000.
From May to November of 2022, users generated a combined trading volume worth $67.7 million compared to the lender's total trading volume at $1.17 billion for the duration of time. BlockFi was able to accrue over $14 million in revenue from those trades with an average earning per user estimated at around $21, as presented by available documents.
According to the records, BlockFi's cash and digital assets amounted to a total of $668.8 million; with their unadjusted holdings totalling around $2.7 billion. The documents revealed that nearly half of those assets are connected with FTX and Alameda.
The failed crypto lender has revised the value of its loan to Alameda and corresponding assets on FTX to $0. Following all considerations, their total assets are valued at $1.3 billion as noted in documents. Out of this figure, barely more than half $668.8 million is considered "Liquid/To Be Distributed."
JonathanAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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