Bankrupt cryptocurrency lender BlockFi reportedly had over US$1.2 billion of assets tied to cryptocurrency exchange FTX.com and its sister trading firm Alameda Research, according to recent financial documents that BlockFi’s lawyers released by mistake on Tuesday, CNBC reported.
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- The recently uploaded documents from BlockFi’s bankruptcy case reportedly included previously redacted information that suggested that the lender’s exposure to FTX may now be greater than previously disclosed.
- BlockFi’s unredacted balance showed US$415.9 million worth of assets linked to the now-bankrupt FTX and US$831.3 million in loans to bankrupt Alameda Research as of Jan. 14, according to CNBC.
- A lawyer for BlockFi had stated during the lender’s first bankruptcy hearing last November that it had a US$671 million loan to Alameda and an additional US$355 million in digital assets frozen at the FTX exchange.
- The value of the assets linked to BlockFi’s exposure to FTX and Alameda would have since increased in value with Bitcoin and Ether’s recent rally. The total cryptocurrency market capitalization stood close to US$835 billion by the end of November but surged to US$994 billion on Jan. 14, when BlockFi’s unredacted balance was measured.
- BlockFi filed for Chapter 11 bankruptcy protection in late November following the collapse of the FTX and founder Sam Bankman-Fried’s crypto empire. FTX previously agreed to rescue the struggling lender before suffering its own financial collapse.
- A lawyer from BlockFi’s creditor committee confirmed to CNBC that the unredacted filing was uploaded in error.
- Attorneys for BlockFi did not immediately respond to Forkast’s request for comment.
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