Blockphi’s secret finances show FTX and Alameda have $1.2 billion relationship

Bankrupt crypto lender BlockFi had more than $1.2 billion in assets tied to Sam Bankman-Fried’s FTX and Alameda Research.

BlockFi’s exposure to FTX was greater than previous disclosures suggested. The company he filed for Chapter 11 bankruptcy protection in late November. FTX had agreed to bail out distressed lenders before it collapsed.

Balances shown in unredacted BlockFi filings include $415.9 million worth of assets related to FTX and an $831.3 million loan to Alameda. These numbers are current as of January 14th. Both Bankman-Fried companies were embroiled in his FTX bankruptcy in November, and the cryptocurrency market was rocked.

BlockFi’s attorneys previously said the loan to Alameda was valued at $671 million, with an additional $355 million in frozen digital assets on the FTX platform. Bitcoin and Ethereum have since risen, increasing the value of these holdings.

The financial presentation was put together by M3 Partners, an advisor to the Board of Creditors. The law firm is represented by Brown-Rudnick Law Firm and is made up entirely of BlockFi clients who are in debt from bankrupt lenders.

An attorney for the creditors committee confirmed to CNBC that the unredacted file was uploaded in error, but declined to comment further.Attorneys for BlockFi did not respond to a request for comment.

Other information currently available about BlockFi includes high-level details regarding customer numbers, account sizes, and trading volumes.

BlockFi had 662,427 users, of whom nearly 73% had an account balance of less than $1,000. Over the six months from May to November of last year, these customers had a cumulative trading volume of $67.7 million, for a total trading volume of $1.17 billion. According to the presentation, BlockFi generated over $14 million in trading revenue during that period, with an average revenue of $21 per customer.

The company had $302.1 million in cash and $366.7 million in wallet assets. In all, the crypto lender holds nearly $2.7 billion worth of unadjusted assets, nearly half of which is tied to his FTX and Alameda, the presentation shows.

BlockFi’s failure was sparked by exposure to Three Arrows Capital, a cryptocurrency hedge fund that filed for bankruptcy protection in July. FTX had prepared a rescue plan for BlockFi through a $400 million revolving credit facility, but that deal collapsed as FTX faced its own liquidity crisis and quickly went bankrupt.

According to the latest released BlockFi financial information, the value of both Alameda’s loan bond and assets related to FTX have been adjusted to $0. After all adjustments, BlockFi’s assets are approaching $1.3 billion, of which only $668.8 million is listed as “current/to be distributed.”

BlockFi’s remaining 125 employees are being paid heavily as part of a proposed retention plan designed to keep some people on board during the bankruptcy process.

Retained employees will recover a total of $11.9 million on an annual basis. Among the remaining staff he has three client success staff, each earning an average of over $134,000 a year.

According to the presentation, the five employees still with the company today have an average annual salary of $822,834, which indicates that BlockFi’s retention plan is “larger than the equivalent cryptocurrency case.” increase.

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