BlockFi Had Secret $1,200,000,000 Relationship With FTX and Alameda

A new report finds that bankrupt crypto lender BlockFi had more financial interest in Sam Bankman-Fried’s FTX and Alameda Research than originally believed.

During BlockFi’s first bankruptcy hearing in November, lawyers for the beleaguered company said that the firm has $355 million worth of crypto assets on the FTX exchange and $671 million in loan to Alameda, or a total of just over $1 billion.

According to a new report from CNBC, BlockFi’s exposure to Bankman-Fried’s fallen empire is now worth $1.2 billion. Citing an uncensored BlockFi filing, the report says that as of January 14th, the firm has $415.9 million in assets with FTX and an $831.3 million loan to Alameda.

M3 Partners, an advisor to BlockFi’s creditor committee, put together the filing for presentation. Some details on the report were supposed to be censored but the document was mistakenly uploaded and shown to the public without the redaction.

The financial presentation also shows that BlockFi has unadjusted assets worth almost $2.7 billion, which means nearly half of the beleaguered crypto lender’s assets are tied to FTX and Alameda.

Following the publication of the story, a BlockFi representative said the company prioritizes transparency.

“BlockFi has disclosed accurate information to the Court as part of our Statement of Financial Affairs, which was filed on January 12, 2023.”