Market Analysis Report (25 Jan 2023)

Bankrupt cryptocurrency lender BlockFi had over $1.2 billion in assets tied to Sam Bankman-Fried’s FTX and Alameda Research, according to financials that were recently uploaded without the redactions.

BlockFi’s exposure to the collapsed cryptocurrency exchange is greater than prior disclosures suggested. The balance shown in the filing includes $415.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda as of January 14.

The cryptocurrency lender filed for Chapter 11 bankruptcy in November, after the failure of FTX, which had planned to save the struggling company before its own collapse.

BlockFi’s lawyers had said earlier that the loan to Alameda was valued at $671 million, while there were an additional $355 million in digital assets frozen on FTX. The value of these holdings has grown after the prices of BTC, ETH and other cryptos rallied.

The crypto lender had 662,427 users, of which around 73% had under $1,000 in their accounts. The company had $302.1 million in cash, alongside wallet assets valued at $366.7 million. The lender has almost $2.7 million in unadjusted assets, with close to half tied to FTX and Alameda.

The latest financial statement from BlockFi shows that the value of the Alameda loan receivable and assets linked to FTX have been set to $0. Following these adjustments, BlockFi has a total of nearly $1.3 billion in assets, with only $668.8 million categorized as “Liquid/To Be Distributed.”

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/jan/25/