FTX Loan Washed Out $800M in BlockFi Executives Equity

  • As per court filings, the FTX loan has swept away $800M  in BlockFi executive equity.
  • The filing details the effects of a June FTX loan on 13 BlockFi executives.

BlockFi, a cryptocurrency lender, has revealed its revenue figures. The filing describes the consequences of an FTX loan in June on 13 BlockFi executives. BlockFi’s equity interests were wiped out by a total of $800 million as a result of the loan.

A statement of financial affairs released by the crypto lender comprises thousands of pages describing transactions that occurred in the run-up to its collapse. And with gross revenue of more than $4 million for 2022 until its demise on Nov 28.

BlockFi lawyer to New Jersey Bankruptcy court filings says that 

“Because of the huge impact of the FTX deal on management equity, the BlockFi board of directors increased base salary and made retention rewards to those who remained in order to maintain business. -critical knowledge and capabilities”

According to the filings, founder and CEO Zac Prince lost $413 million in ownership value and was compensated with a pay increase ranging from $250,000 to $400,000. While others were awarded raises of up to $560,000.

Furthermore, the filings say that no other members of the management team have not withdrawn the cryptocurrency since October 14, and the team represents only 0.15% of the $7.7 billion retail withdrawals every year.

Nonetheless, senior management withdrawals totaled over $9 million in April. It also indicates that it was to pay US federal and state taxes, as well as his August withdrawal of little more than $870,000.

Furthermore, the majority of the transaction data is anonymized due to the decision to unseal creditor information next week.

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