BlockFi bankruptcy: $1.2 billion exposure to FTX and Alameda mistakenly revealed

Inadvertent revelation – News financial datas show an increase in exposure of BlockFi at FTX and its sister company Alameda. The discrepancies between the amounts presented on different dates could be due to a revival in the form of the crypto markets.

Accidental revelation of $1.2 billion exposure

In a recent presentation, M3 Partnerswho serves as adviser to BlockFi’s creditors’ committee, has revealed new numbers, as to the bankrupt crypto lending firm’s exposure to FTX and Alameda.

Uncensored financial statements allegedly downloaded – uploaded – by mistake show BlockFi allegedly has $415.9 million of assets linked to FTX, and would be exposed up to $831.3 million in Alameda, on January 14th.

BlockFi: the amount of its exposure to FTX and Alameda
BlockFi fell victim to the FTX contagion

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20% difference between the amounts due to the 33% and 29% rises in Ether and Bitcoin?

The total of these recently disclosed figures is approximately 20% higher to the sum of the amounts that BlockFi’s attorney, Joshua Susberg, said during the first hearing of the company’s bankruptcy proceedings on November 29. BlockFi funds locked in FTX would then have raised to $355 million, and Alameda expected $680 million of unpaid loans to the crypto lending company.

Between the time when BlockFi filed for Chapter 11 protection of the American bankruptcy law, November 28, and this date of January 14, the Ether (ETH) price recorded an increase of approximately 33%while the Bitcoin (BTC) price jumped from 29%. These significant increases could explain – in whole or in part – the differences in the November 28 figures and the January 14 amounts.

Value of BlockFi assets: less than $1.3 billion after adjustment

In effect, these BlockFi assets linked to FTX and Alameda are (highly) bad debts. The latest financial information that the company has published shows that the value of the assets locked in FTX and the outstanding loan receivable from Alameda has been adjusted to $0.

The value of BlockFi’s assets would then amount to a little less than $1.3 billion, after these adjustments. Furthermore, only $668.8 millionor approximately 48% of the adjusted value of these assets, are considered liquid and can therefore be distributed.

BlockFi needs to make its balance sheet – or more specifically its assets – more liquid in order to be able to repay its creditors. To have cash, the company launched a call for tenders last year, for sell $160 million worth of crypto loansguaranteed by 68,000 mining machines.

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