Ftx, and alameda research were involved in a situation that saw blockfi halt withdrawals on november 11, the same day ftx filed for bankruptcy. blockfi had $415.9 million worth of assets tied up with ftx and $831.3 million in loans to its sister company alameda. in july 2022, blockfi received a $400 million line of credit from ftx. the events took place primarily in the united states, with m3 partners uploading the financial documents, not blockfi.
Had the assets frozen on ftx and the loan to alameda defaulted on november 11, and the bankruptcy was officially announced on november 28. blockfi has been transparent throughout the chapter 11 process, and has disclosed accurate information to the court as part of its statement of financial affairs. the latest financials now show that the figure is $1.247 billion, with $302.1 million in cash and $366.7 million in crypto assets.
Reason for the situation is that blockfi had under $1.3 billion in assets, with only $668.8 million of which being described as “liquid / to be distributed.” to make up for this, blockfi is going to sell $160 million in loans backed by nearly 68,000 bitcoin mining rigs. the value of both the alameda loan receivable and the ftx-linked assets have been adjusted to zero. a lawyer for the creditor committee reportedly confirmed that the unredacted filing was uploaded by mistake.