{"id":16877,"date":"2023-01-25T15:30:11","date_gmt":"2023-01-25T15:30:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/unredacted-financial-documents-show-blockfis-1-2-billion-connection-with-ftx-alameda-research-bitcoin-news\/"},"modified":"2023-01-25T15:30:11","modified_gmt":"2023-01-25T15:30:11","slug":"unredacted-financial-documents-show-blockfis-1-2-billion-connection-with-ftx-alameda-research-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/unredacted-financial-documents-show-blockfis-1-2-billion-connection-with-ftx-alameda-research-bitcoin-news\/","title":{"rendered":"Unredacted Financial Documents Show Blockfi’s $1.2 Billion Connection With FTX, Alameda Research\u00a0 \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Unredacted documents mistakenly sent to the bankruptcy court indicate that the now-defunct crypto lender Blockfi had more than $1.2 billion tied up with FTX and Alameda Research. The accidentally revealed documentation shows that Blockfi\u2019s exposure to the bankrupt crypto firm FTX was more than what the company had previously disclosed.<\/strong><\/p>\n

Unredacted Documents Reveal Blockfi\u2019s $1.2 Billion Exposure to FTX, Alameda Research<\/h2>\n

It seems that Blockfi had a lot more money tied up with FTX and Alameda Research than what was originally suggested by the firm. A CNBC report<\/a> indicates that unredacted documents were mistakenly sent to the bankruptcy court, revealing that Blockfi had $415.9 million connected to FTX, and roughly $831.3 million in loans to Alameda Research.<\/p>\n

The latest Blockfi filing shows that $1.2 billion is allegedly tied up with both FTX and Alameda, both of which have filed<\/a> for Chapter 11 bankruptcy protection. When Blockfi\u2019s bankruptcy case started in New Jersey, lawyers originally quoted<\/a> the loans to Alameda as being around $671 million, and another $355 million was said to be locked on the FTX exchange. Blockfi paused<\/a> withdrawals on Nov. 10, 2022, one day before FTX filed for bankruptcy.<\/p>\n

Two days before the pause, Blockfi co-founder Flori Marquez told<\/a> the crypto community that \u201cBlockfi is an independent business entity\u201d amid the FTX drama. She further noted that Blockfi had a \u201c$400 million line of credit from [FTX US] (not FTX.com) and will remain an independent entity until at least July 2023.\u201d Less than a month later, Blockfi filed<\/a> for Chapter 11 bankruptcy protection in the state of New Jersey.<\/p>\n

CNBC further reports that Blockfi has 125 staff members still on Blockfi\u2019s payroll and a total of $11.9 million will be collected on an annualized basis. Furthermore, five top Blockfi executives are still earning $822,000 for the year, according to a presentation designed by M3 Partners. CNBC\u2019s MacKenzie Sigalos reached out to Blockfi, but the company \u201cdid not respond to a request for comment.\u201d<\/p>\n

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\nTags in this story
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1.2 billion<\/a>, Alameda Research<\/a>, annualized basis<\/a>, bankrupt firms<\/a>, Bankruptcy<\/a>, Blockfi<\/a>, Blockfi Bankrupt<\/a>, Blockfi Bankruptcy<\/a>, business entity<\/a>, Chapter 11 bankruptcy protection<\/a>, cnbc<\/a>, community<\/a>, Crypto lender<\/a>, crypto lending industry<\/a>, Drama<\/a>, Exposure<\/a>, financial documents<\/a>, financial misrepresentation<\/a>, Flori Marquez<\/a>, ftx<\/a>, FTX.US<\/a>, hidden exposure<\/a>, independent<\/a>, independent entity<\/a>, July 2023<\/a>, line of credit<\/a>, loans<\/a>, M3 Partners<\/a>, MacKenzie Sigalos<\/a>, New Jersey<\/a>, Payroll<\/a>, request for comment<\/a>, Scrutiny<\/a>, Staff Members<\/a>, ties<\/a>, Top Executives<\/a>, undisclosed<\/a>, unredacted documents<\/a>, zac prince<\/a><\/div>\n<\/div>\n

What do you think is the impact of this Blockfi revelation? Let us know your thoughts in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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