Bankrupt crypto lending firm BlockFi has reportedly accidentally uploaded uncensored financials, revealing $1.2 billion in assets tied up with bankrupt exchange FTX and its related trading firm Alameda Research.
According to a report from CNBC, the unredacted filings show that as of Jan. 14, BlockFi had $415.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda.
The financials were leaked as part of a presentation put together by M3 Partners, an advisor to the creditor committee, who reportedly admitted that the filing was uploaded in error.
The correctly redacted November 24 declaration relates to the creditor committee’s objection that BlockFi is seeking to pay key employees $12.3 million in retention payments despite their limited operations and assets.
BlockFi has attempted to separate itself from FTX and Alameda throughout its bankruptcy proceedings, but the state of financial obligations between the firms is complicated.
On July 1, FTX.US, the U.S. arm of FTX, extended a $400 million line of credit to BlockFi after the lender was caught up in the contagion caused by the collapse of Terra’s algorithmic stablecoin on May 10, 2022.
The loan is set to expire on June 30, 2027, and has an interest rate of 5%. The deal also provided FTX.US with the option to acquire BlockFi for “a variable price of up to $240 million based on performance triggers.”
BlockFi filed for Chapter 11 Bankruptcy on Nov. 28, citing the collapse of FTX just weeks earlier as the cause of its financial troubles.
The company also filed a lawsuit on November 28 against Emergent Fidelity Technologies, a holding company of Sam Bankman-Fried, seeking collateral that the firm had pledged to pay on November 9, which included shares in the online brokerage Robinhood.
The financial figures revealed in the uncensored financials were different from the figures mentioned by BlockFi’s lawyers on November 29 during the first-day hearing of its bankruptcy proceedings, which were $355 million stuck on FTX and $680 in loans to Alameda. However, the value of the funds has increased with the price of Bitcoin.
