BlockFi Reportedly Has Around $1.2 Billion Exposure to FTX

  • FTX and its subsidiaries filed for bankruptcy in November of last year.
  • BlockFi temporarily halted withdrawals on November 28 and filed for bankruptcy.

According to unaltered financial data that was accidentally posted on Tuesday, insolvent crypto lender BlockFi is connected to SBF’s FTX and Alameda Research to the tune of around $1.2 billion.

Moreover, according to CNBC, the January 14 confidential financial data shows that BlockFi filings comprise a loan to Alameda of $831.3 million and assets tied to FTX totaling $415.9 million. M3 Partners, a consultant to the creditors’ committee, put together the financial presentation. The committee’s attorney did admit to CNBC that the financial data were submitted in mistake, but he would not elaborate.

It has been reported that BlockFi’s attorneys estimated the loan to Alameda Research at $671 million. After SBF stepped down as CEO on November 11, FTX and its subsidiaries filed for bankruptcy. According to the bankruptcy petition filed by FTX, the exchange was experiencing a significant liquidity difficulty at the time.

Due to the FTX scandal, BlockFi temporarily halted withdrawals on November 28 and, on the same day, the lender filed for Chapter 11 bankruptcy.

Bonus Payment For Staff

On Monday, the bankrupt cryptocurrency lender BlockFi asked the court for permission to provide incentives to its staff, claiming that it needs to retain skilled professionals while it works on restructuring and that these people are being enticed away by more attractive offers from competitors.

In a court filing from last November, BlockFi argued that maintaining its core team members was essential to its reorganization and continued success as a trading platform. As part of its retention effort, the company will pay critical employees either 50% of their base pay or 10% of their base pay.

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