Unredacted BlockFi financials show $1.2B+ link to FTX, Alameda

BlockFi had more than $1.2 billion in assets tied to the bankruptcies of FTX and Alameda Research, according to financial documents uploaded in error without redaction on Jan. 24.

The documents, which were previously redacted, revealed that BlockFi had a higher exposure to FTX than previously disclosed, according to a CNBC. report.

As of January 14, BlockFi has $415.9 million in assets tied up in FTX and had loaned $831.3 million to Alameda, the documents show. This puts the crypto lender’s total assets tied to FTX and Alameda at over $1.2 billion.

BlockFi’s lawyers had previously stated that the lender had $355 million in assets locked up in FTX. The lawyers had also valued the loan to Alameda at $671 million. BlockFi’s total exposure to FTX and Alameda therefore stood at just over $1 billion, according to previous disclosures.

FiBlock archived for Chapter 11 bankruptcy weeks after the collapse of FTX and Alameda. The crypto lender had been struggling since the Three Arrows Capital hedge fund collapsed in July. BlockFi had managed to secure a lifeline from FTX in the form of a $400 million line of credit.

BlockFi had also extended FTX the option to acquire the company for $240 million, but the deal fell through when FTX filed for bankruptcy.

Details about BlockFi users

The uncensored documents also revealed that the lender had 662,427 users. Of this, about 73% of users had balances of less than $1,000.

Between May and November 2022, these users accumulated a trading volume of $67.7 million, while the lender’s total trading volume was $1.17 billion. BlockFi earned more than $14 million in business revenue during the period, averaging $21 in revenue per user, the documents show.

total assets

According to the documents, BlockFi had $302.1 million in cash and $366.7 million worth of digital assets. The lender’s total unadjusted assets are worth about $2.7 billion, with nearly half tied to FTX and Alameda, the documents showed.

The defunct cryptocurrency lender has adjusted the value of its loan to Alameda and its assets in FTX to $0. After all the adjustments, its total assets are worth $1.3 billion, the documents state. Of this, just over half, or $668.8 million, is “liquid/to be distributed.”

Add Comment