Uncensored BlockFi financials have been leaked, showing $1.2 billion exposure to FTX. These recent documents were released in error and contain more information than previously shown.
Poor management at FTX affected now-bankrupt crypto lender BlockFi as new financial reports show $1.2 billion tied to the collapsed platform. BlockFi has taken down the financials as they were not meant to be issued.
BlockFi’s financials showed $415.9 million worth of assets linked to FTX and $831.3 million to Alameda. The CNBC report cited previously leaked financial information by M3 Partners, advisors to the BlockFi creditor committee. M3 Partners clarified that the upload was in error.
This is not the first time that BlockFi has issued a revised announcement. On November 24, it provided one related to objections from the Committee of Creditors that BlockFi was planning to pay $12.3 million in retention payments to key employees. This report was challenged because BlockFi is under limited operations, which means it does not have the right resources to meet such a commitment.
A subsequent filing reveals that the company omitted parts of the report under the guise of trade secrets, confidential commercial information, research and development.
FTX collapse continues to haunt BlockFi
Blockfi continues to be criticized for its relationship with FTX. On November 29, the day of its first hearing, its lawyers said $355 million was stuck in FTX and $680 million in Alameda.
However, the values that have now risen to the figures shown in the latest disclosure are very different, as the price of BTC has risen since November. But what happened for BlockFi to end up in FTX’s trap?
The May 2022 Terra meltdown affected BlockFi heavily as it held some of its assets in the UST. The crypto lender has secured a $400M loan from FTX.US. The loan was set to expire on June 30, 2027 with an interest rate of 5%. The deal allows FTX.US to acquire BlockFi for a price of up to $240M depending on the company’s performance.
Now that FTX is down, BlockFi remains a creditor of the exchange, with no end in sight to its issues. There is still a long way to go before all FTX creditors are repaid.