Secret financial data from BlockFi shows a $1.2 billion tie-up with FTX and Alameda

The BlockFi logo displayed on a phone screen and representation of cryptocurrencies are seen in this illustrative photo taken in Krakow, Poland on Nov. 14, 2022.

Jakub Porzycki | Nurfoto | Getty Images

Bankrupt crypto lender BlockFi had more than $1.2 billion in assets tied to FTX and Sam Bankman-Fried’s Alameda Research, according to financials that were previously redacted but wrongly uploaded Tuesday without the redactions.

BlockFi’s exposure to FTX was greater than previous disclosures suggested. The company filed for Chapter 11 bankruptcy protection in late November, following the collapse of FTX, which had agreed to bail out the troubled lender before its collapse.

The balance shown in the unredacted BlockFi filing includes $415.9 million in FTX-related assets and $831.3 million in loans to Alameda. These figures date back to January 14th. Both of Bankman-Fried’s companies were involved in the November FTX bankruptcy, which sent cryptocurrency markets reeling.

BlockFi’s attorneys previously said the loan to Alameda was valued at $671 million, while there was another $355 million in digital assets frozen on the FTX platform. Bitcoin and ether have since recovered, increasing the value of those holdings.

The financial presentation was assembled by M3 Partners, advisor to the creditors’ committee. The firm is represented by the Brown Rudnick law firm and is made up entirely of BlockFi clients to whom the bankruptcy creditor is owed.

A lawyer for the creditors’ committee confirmed to CNBC that the unedited filing was uploaded in error, but declined to comment further. BlockFi’s attorneys did not respond to a request for comment.

Other information now available about BlockFi includes its client numbers and high-level details about their account size and trading volume.

BlockFi had 662,427 users, nearly 73% of whom had account balances of less than $1,000. In the six months from May to November last year, those clients had cumulative trading volume of $67.7 million, while total volume was $1.17 billion. BlockFi earned just over $14 million in commercial revenue over that period, according to the filing, averaging $21 in revenue per customer.

The company had $302.1 million in cash, as well as $366.7 million in portfolio assets. In all, the crypto lender has nearly $2.7 billion worth of unadjusted assets, nearly half of which are tied to FTX and Alameda, the presentation shows.

BlockFi’s bankruptcy was precipitated by exposure to Three Arrows Capital, a cryptocurrency hedge fund that filed for bankruptcy protection in July. FTX had arranged a bailout for BlockFi, through a $400 million revolving credit facility, but the deal fell apart when FTX faced its own cash crunch and quickly went bankrupt.

According to the latest BlockFi financial data released, the value of both Alameda loan credit and FTX-related assets have been adjusted to $0. After all adjustments, BlockFi has just under $1.3 billion in assets, of which only $668.8 million is described as “Cash / To be Distributed”.

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

The retained employees will raise a total of $11.9 million annually. Among the remaining staff members are three Customer Success employees, who will each take home an annual average of more than $134,000.

Five employees still with the firm make an average of $822,834, according to the filing, which shows that BlockFi’s retention plans “are bigger than comparable crypto cases.”

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