Bankrupt crypto lender BlockFi had secret $1,200,000,000 relationship with FTX and Alameda: report

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A new report reveals that bankrupt crypto lender BlockFi had more financial interests in Sam Bankman-Frieds FTX and Alameda Research than originally thought.

During BlockFis’ first bankruptcy hearing in November, attorneys for the embattled company said the company had $355 million in crypto assets on the FTX exchange and $671 million in loans to Alameda, or a total of just over a billion dollars.

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

M3 Partners, adviser to the BlockFis creditors’ committee, prepared the file for presentation. Some details of the report were supposed to be redacted, 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 nearly $2.7 billion, which means nearly half of the embattled crypto lenders’ assets are tied to FTX and Alameda.

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

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

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