Home - News - Breaking News: BlockFi is said to have about $1.2 billion in FTX exposure.

James Carter

January 25, 2023

Breaking News: BlockFi is said to have about $1.2 billion in FTX exposure.

Insolvent cryptocurrency lender BlockFi is linked to SBF’s FTX and Alameda Research to the tune of almost $1.2 billion, as indicated by unedited financial data that was unintentionally leaked on Tuesday.

In addition, according to CNBC, the private financial data from January 14 reveals that BlockFi filings include a loan to Alameda in the amount of $831.3 million as well as assets connected to FTX with a total value of $415.9 million. The financial presentation was put together by M3 Partners, which served as a consultant to the committee of creditors. The committee’s attorney did agree to CNBC that the financial data had been filed in error; however, he declined to provide any further explanation.

According to a recent article, the counsel for BlockFi anticipated that the loan to Alameda Research would be worth $671 million. On November 11, following SBF’s resignation as CEO, FTX, and its subsidiaries submitted their bankruptcy applications. According to the petition for bankruptcy that was introduced by FTX, the exchange was contending with serious liquidity issues at the time in question.

On November 28, in response to the crisis surrounding FTX, BlockFi temporarily banned withdrawals, and on the same day, the lender filed for Chapter 11 bankruptcy protection.

Pay Increase Or Bonus For Employees

On Monday, the bankrupt cryptocurrency lender BlockFi made a request to the court for permission to provide incentives to its staff. The company claimed that it needs to retain skilled professionals while it works on restructuring and that these people are being enticed away from the company by more attractive offers from competitors.

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BlockFi stated in a court filing that it was necessary for its restructuring and future success as a trading platform to keep its core team members after the company went through a reorganization in November of last year. As part of its retention drive, the company will give its most important employees either 50% of their base salary or 10% of their base salary.