BlockFi Financial Records Reveal $1.2B Ties to FTX: Reports

Bankrupt crypto lending firm BlockFi accidentally revealed $1.2 billion exposure to FTX that has been deposited with the exchange and Alameda Research, according to a recent report by CNBC.

The financials for BlockFi were mistakenly uploaded on Tuesday without revisions, indicating a greater exposure to FTX than anticipated. In a breakdown, the report established that BlockFi had $415.9 million worth of assets with FTX and another $831.3 million in loans to Alameda Research.

During the first court proceeding on BlockFi’s bankruptcy case, lawyers representing the crypto lender disclosed that the firm has $355 million deposited on FTX and another $680 million loan with Alameda Research. 

Currently, the report raises more questions about the transparency of the business activities between the three organizations.

Recall that FTX planned to provide a $400 million credit facility to BlockFi after the latter was on the verge of bankruptcy due to its exposure to Terra’s algorithmic stablecoin. 

After the collapse of FTX in November, it was revealed that a large part of the financial aid was left on the cryptocurrency exchange, thus pushing BlockFi into another round of financial crisis. 

In an attempt to reclaim some of its assets with FTX, BlockFi sued a holding firm belonging to Sam Bankman-Fried, Emergent Fidelity Technologies, on November 28. BlockFi, through the lawsuit, intended to reclaim the collateral FTX promised to pay before its collapse. 

Further, the assets include 56 million shares in Robinhood, which was $465 million in valuation at the time of filing. According to reports, prosecutors seized the shares on January 9, as they suspected it belonged to the embattled former FTX CEO.