BlockFi’s leaked financials show $1.2b exposure to FTX and Alameda

Uncensored BlockFi financials have leaked, showing a $1.2 billion exposure to FTX. These recent documents were released by mistake and contained more information than previously shown. 

Poor management at FTX impacted the now-bankrupt crypto lender BlockFi as new financial reports show a $1.2 billion tie to the collapsed platform. BlockFi has taken down the financials as they were not meant to be released.

BlockFi’s financials showed a connection of $415.9 million worth of assets linked to FTX and $831.3 million to Alameda. The report from CNBC cites previously leaked financials by M3 Partners, advisors to the BlockFi creditor committee. M3 partners explained that the upload was erroneous.

It’s not the first time that BlockFi has released redacted declarations. On November 24, it provided one related to the creditor committee’s objection that BlockFi was planning to pay key employees $12.3 million in retention payments. This report was challenged as BlockFi is under limited operations, meaning it does not have the right resources to service such a commitment.

A subsequent filing shows that the company left out certain parts of the reports under the disguise of trade secrets, confidential commercial information, research, and development.

FTX’s collapse continues haunting BlockFi

BlockFi continues to be under heat for its ties with FTX. On Nov. 29, during its first hearing day, its lawyers said that $355 million was stuck in FTX and $680 million in Alameda. 

However, the values that have now risen to the figures shown in the latest revelations are far different, as the BTC price has risen since November. But what happened for BlockFi to end up in FTX’s nets? 

Terra’s meltdown of May 2022 heavily impacted BlockFi as it had some assets in UST. The crypto lender resolved to get a loan of $400M from FTX.US. The loan was set to expire on Jun 30, 2027, with an interest rate of 5%. The deal also allowed FTX.US to acquire BlockFi for a price of up to $240M, depending on the company’s performance.

Now that FTX is down, BlockFi remains the exchange’s creditor, with no end in sight for its issues. It is still a long way out for all FTX creditors to be repaid.