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BlockFi Seems To Have Accidentally Revealed $1.2B Exposure To FTX, Alameda Research

Benzinga logo Benzinga 1/25/2023 Mehab Qureshi
© Provided by Benzinga

BlockFi, the bankrupt cryptocurrency lending firm, has inadvertently revealed financials indicating $1.2 billion in assets tied up with the embattled FTX and Alameda Research.

What Happened: According to a report from CNBC, filings that had previously been redacted but were mistakenly uploaded on Tuesday without the redactions reveal that BlockFi had $415.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda, as of Jan. 14.

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BlockFi’s collapse was caused by its exposure to Three Arrows Capital, a crypto hedge fund that filed for bankruptcy protection in July. Subsequently, FTX negotiated a rescue plan for BlockFi, though the loss of liquidity in FTX’s own crisis ultimately weakened the $400 million revolving credit facility and caused the elimination of the deal.

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The CNBC report added that the Alameda loan receivable and assets connected to FTX have been adjusted to $0, leaving BlockFi with over $1.3 billion in total assets. Of the total, only $668.8 million are categorized as "Liquid / To Be Distributed." 

BlockFi's 125 remaining employees will be handsomely compensated under a proposed retention plan, according to the filing. The aggregate annual compensation for these employees will amount to a grand total of $11.9 million.

BlockFi has plans to sell off $160 million in loans backed by around 68,000 Bitcoin (CRYPTO: BTC) mining machines as part of bankruptcy proceedings, Bloomberg reported on Monday.

BlockFi did not immediately respond to Benzinga’s request for comment.

Price Action: At the time of writing, BTC was trading at $22,622 down 1.82% in the last 24 hours, according to Benzinga Pro.

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