This illustrated photo taken in Krakow, Poland, on November 14, 2022, shows the BlockFi logo and representations of cryptocurrencies displayed on a mobile phone screen.
Jakub Porzycki | Null Photo | Getty Images
bankrupt crypto lender block phi Previously compiled financial information, which had more than $1.2 billion in assets tied to Sam Bankman-Fried’s FTX and Alameda Research, was mistakenly uploaded Tuesday without redaction.
BlockFi’s exposure to FTX was greater than previous disclosures suggested. The company he filed for Chapter 11 bankruptcy protection in late November. Collapse of FTXagreed to save a struggling lender before its own meltdown.
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 lawyers previously said the loan to Alameda was $671 million worththere was another $355 million in digital assets frozen on the FTX platform.
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 has filed for bankruptcy protection. in July.FTX is rescue plan For BlockFi, that deal collapsed when FTX faced its own set of problems through its $400 million revolving credit facility. liquidity crisis and soon 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.
