BlockFi $1.2 billion exposure to FTX-Alameda leaked on accident

Crypto lender BlockFi was exposed to FTX-Alameda and collapsed shortly after SBF’s downfall.

Leaked documents have shown that BlockFi held around $1.2 billion in assets with FTX and Alameda.

The information was leaked accidentally by BlockFi’s lawyers according to CNBC.

BlockFi's dangerous exposure to FTX-Alameda leaked on accident

After rumours that the crypto lender was in jeopardy following the FTX-Alameda debacle, BlockFi filed for Chapter 11 bankruptcy in November 2022.

After venture firm 3AC folded, FTX credited BlockFi to help them continue operations. Unfortunately, when FTX-Alameda collapsed, BlockFi happened to have $1.2 billion in assets tied to the exchange and its investment partner.

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Included in the total are $800 million worth of assets that were loaned to Alameda Research. The $1.2 billion in funds are currently frozen, and BlockFi is unable to use the assets to reimburse creditors.

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Lawyers for BlockFi told CNBC that the leaked documents about BlockFi’s $1.2 billion frozen funds were leaked on accident. Aside from inaccessible assets, the documents revealed that 662,427 clients were using BlockFi before it filed for bankruptcy.

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