BlockFi Discloses FTX Exposure, Alameda Loans As Withdrawals Still On Pause

The FTX implosion continues to unravel the web of mysteries that apparently shroud the crypto industry. Crypto lender BlockFi just disclosed that it has positions in the now bankrupt exchange and extended loans to its sister hedge fund Alameda Research.

In refuting rumors that “a majority of BlockFi assets are custodied at FTX,” the BlockFi team confirmed it has “significant exposure” to FTX and its associated entities.

“The rumors that a majority of BlockFi assets are custodied at FTX are false. That said, we do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,” the lender said in its blog.

The firm also tried to assure investors that it will “continue to work on recovering all obligations owed to BlockFi.” However, it expects delays on the process as FTX undergoes its own bankruptcy proceedings.

“At this time, withdrawals from BlockFi continue to be paused. We also continue to ask clients not to submit any deposits to BlockFi Wallet or Interest Accounts,” the team added.

BlockFi recently announced that it would be ”limiting platform activity”–including pausing withdrawals–following the uncertainty posed by the situation with FTX; back then, the firm wasn’t yet upfront with the amount of exposure it has to the crypto exchange’s downfall.

This is a complete turnaround from the statements tweeted just two days before by BlockFi Founder and COO Flori Marquez, underlining then that ”all BlockFi products are fully operational.”

The crypto firm also promised that it “has the necessary liquidity to explore all options” about how to move forward. It continues to retain Haynes and Boone as primary outside counsel while BRG has been engaged as its financial advisor.

Back in June, FTX got close to acquiring BlockFi at a 99% discount—FTX was reportedly to pay just $25 million for BlockFi, which last summer held a valuation of $4.8 billion.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

The End Of ‘FTX Arena’: Miami-Dade County Changes Name to ‘the Arena’

A federal bankruptcy judge terminated the naming rights agreement between FTX and Miami-Dade County on...

Friday, January 13, 2023, 11:22:00 AM

FTX On Crosshair For “Any Potential Violations Of Bahamian Law”

Bahamian authorities are still investigating the collapsed cryptocurrency exchange FTX, according to Attorney General Ryan...

Monday, November 28, 2022, 02:19:00 PM

FTX’s Former In-House Lawyer Said FTX US Is Solvent, So Why Did It File For Bankruptcy?

As if the fallen crypto exchange FTX’s bankruptcy proceedings isn’t enough of a legal kerfuffle,...

Friday, January 20, 2023, 10:40:18 AM

BlockFi Plans To Liquidate As Customers Lose $300 Million On Judge Ruling

BlockFi, the bankrupt cryptocurrency lender, intends to liquidate its cryptocurrency lending platform after determining that...

Wednesday, May 17, 2023, 10:42:00 AM

FTX CEO Sam Bankman-Fried Loses At Least 94% Of Net Worth In One Fell Swoop

FTX CEO Sam Bankman-Fried, also knowns as SBF, is no longer a billionaire. The beleaguered...

Thursday, November 10, 2022, 04:32:00 PM