BlockFi Secret Financials Show $1.2 Billion Exposure to SBF’s Crypto Empire

On Tuesday, financials that had been redacted previously were uploaded on Twitter mistakenly without the redactions.

They revealed that BlockFi, the bankrupt crypto lender, had exposure to Sam Bankman-Fried’s Alameda Research and FTX worth $1.2 billion.

Great exposure

It should be noted that the company’s exposure was far greater than what had been suggested in previous disclosures.

In late November, BlockFi had also filed for Chapter 11 bankruptcy, not long after FTX, which had agreed to help out the struggling crypto lender before its spectacular collapse.

The unredacted BlockFi filing shows that the $1.2 billion includes assets worth $415.9 million related to FTX and loans to Alameda Research made up about $831.3 million.

The data is from January 14th by which time both of Sam Bankman-Fried’s companies had already filed for bankruptcy and left the crypto market reeling.

BlockFi lawyers had stated earlier that the loans to Alameda Research had been valued at $671 million and had said that digital assets that had been frozen on FTX had been valued at $355 million.

Since then, there has been a rally in both bitcoin and ether, which has increased the value of these holdings.

The creditor committee

An advisor to the creditor committee named M3 Partners assembled the financial presentation. Law firm Brown Rudnick is representing the company and comprises of BlockFi clients who are owed by the crypto lender.

An attorney for the creditor committee confirmed that the unredacted file had been uploaded by mistake, but did not elaborate further.

A representative for BlockFi said that their priority was transparency. The representative said that accurate information had been shared with the court, as part of their Statement of Financial Affairs.

They said that the filing was made on January 12th and some of the other information available about the company includes its number of customers, along with their trading volume and size of accounts.

The information

The data shows that there were a total of 662,427 users and about 73% of them had balances less than $1,000 in their account with BlockFi.

Last year, from May to November, the cumulative trading volume of these clients reached $67.7 million, while $1.17 billion had been the total trading volume.

The presentation showed that during this period, the total trading revenue that BlockFi generated had been about $14 million, which was an average of $21 per client.

The total amount of cash the company had was $302.1 million and $366.7 million in wallet assets. The total unadjusted assets of the crypto lender are worth $2.7 billion.

The presentation shows that almost half of them are tied to Alameda and FTX. The failure of the crypto lender started with its exposure to Three Arrows Capital (3AC).

The crypto hedge fund had filed for bankruptcy in July. A rescue plan had been agreed upon between FTX and BlockFi, which included a revolving line of credit worth $400 million.

But, all of that had fallen apart when FTX itself faced a crisis and ended up filing for bankruptcy.

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