BlockFi accidentally revealed $1.2 billion exposure to FTX, according to CNBC.
The report shows BlockFi has $415.9 million in assets with FTX and $831.3 million in loans with Alameda Research.
According to earlier disclosure, the firm had $355 million deposited on FTX.
BlockFi was to receive a $400 million credit facility from FTX last year.
Bankrupt crypto lending firm BlockFi accidentally revealed $1.2 billion exposure to FTX that has been deposited with the exchange and Alameda Research, according to a recent report by CNBC.
The financials for BlockFi were mistakenly uploaded on Tuesday without revisions, indicating a greater exposure to FTX than anticipated. In a breakdown, the report established that BlockFi had $415.9 million worth of assets with FTX and another $831.3 million in loans to Alameda Research.
During the first court proceeding on BlockFi’s bankruptcy case, lawyers representing the crypto lender disclosed that the firm has $355 million deposited on FTX and another $680 million loan with Alameda Research.
Currently, the report raises more questions about the transparency of the business activities between the three organizations.
Highlights of BlockFi’s Financial Exposure to FTX
Recall that FTX planned to provide a $400 million credit facility to BlockFi after the latter was on the verge of bankruptcy due to its exposure to Terra’s algorithmic stablecoin.
After the collapse of FTX in November, it was revealed that a large part of the financial aid was left on the cryptocurrency exchange, thus pushing BlockFi into another round of financial crisis.
In an attempt to reclaim some of its assets with FTX, BlockFi sued a holding firm belonging to Sam Bankman-Fried, Emergent Fidelity Technologies, on November 28. BlockFi, through the lawsuit, intended to reclaim the collateral FTX promised to pay before its collapse.
Further, the assets include 56 million shares in Robinhood, which was $465 million in valuation at the time of filing. According to reports, prosecutors seized the shares on January 9, as they suspected it belonged to the embattled former FTX CEO.
On the Flipside
BlockFi owes about $1 billion to three of its biggest creditors, according to its bankruptcy filings. As part of its retention plan, the firm proposed keeping some employees on board during the bankruptcy proceedings. BlockFi’s remaining 125 employees will earn an aggregate of $11.9 million annually.
Why You Should Care
BlockFi worked to separate itself from FTX and Alameda throughout its bankruptcy proceedings. The recent development further unravels the complicated situation and the extent to which BlockFi is exposed to FTX and Alameda Research.
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This article has been originally published at: https://dailycoin.com/blockfi-financial-records-disclose-ties-to-ftx/