BlockFi Suffers $1.2B Loss After FTX Collapse, Leaked Financials Reveal
•BlockFi’s financials have leaked, showing a $1.2 billion exposure to FTX and Alameda.
•The leaked documents were released by mistake and contained more information than previously shown.
•Poor management at FTX has negatively impacted BlockFi, and its financials show a connection of $415.9 million worth of assets linked to FTX and $831.3 million to Alameda.
Crypto lender BlockFi has been under heat since the collapse of the exchange platform FTX. Recently, financial documents that were not meant to be released have leaked, providing more information than was previously known.
The documents revealed that BlockFi had a total exposure of $1.2 billion to FTX and Alameda, two crypto exchanges that have since gone bankrupt. According to reports from CNBC, the financials were released by mistake and were taken down by BlockFi as soon as they were discovered.
The leaked documents showed that BlockFi had a total of $415.9 million worth of assets linked to FTX and $831.3 million to Alameda. This has been further confirmed by advisors to the BlockFi creditor committee, M3 Partners. They explained that the upload of the documents was an error.
This is not the first time that BlockFi has released redacted documents. On November 24th, they provided one related to the creditor committee’s objection that BlockFi was planning to pay key employees $12.3 million in retention payments. This report was challenged as BlockFi is under limited operations and doesn’t have the resources to service such a commitment.
Unfortunately, the documents reveal that BlockFi has been significantly impacted by the collapse of FTX. Poor management at the exchange platform has caused BlockFi to suffer, leading to a large exposure of $1.2 billion. It remains to be seen how BlockFi will move forward and how it will mitigate the losses it has suffered due to the collapse of FTX.