BlockFi’s Leaked Finances Reveal $1.2B in Assets Linked to SBF’s Failed Firms
• BlockFi’s secret financials were accidentally leaked, revealing that the firm had $1.2 billion in assets tied to Sam Bankman-Fried’s failed companies, FTX and Alameda Research.
• BlockFi is reportedly selling $160 million in Bitcoin miner-backed loans, with the proceeds going towards expanding its crypto lending services.
• BlockFi has also secured a $500 million round of funding from a consortium of investors.
BlockFi has had a tumultuous 12 months, having been caught up in the Terra fiasco and narrowly avoiding bankruptcy after receiving a $400 million lifeline from FTX US in July 2022. However, the company’s financials have recently been accidentally leaked, revealing that BlockFi has $1.2 billion in assets linked to Sam Bankman-Fried’s failed companies, FTX and Alameda Research.
In an attempt to distance itself from the FTX debacle, BlockFi is also reportedly selling $160 million in Bitcoin miner-backed loans, with the proceeds going towards expanding its crypto lending services. The company is also rumored to be in the process of securing a $500 million round of funding from a consortium of investors.
The leaked financials have revealed that BlockFi had $315.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda as of Jan. 14. The documents also show that the company has been struggling to stay afloat in the aftermath of FTX’s collapse.
These leaked financials have caused a stir in the crypto lending community, as it is clear that BlockFi has been heavily exposed to SBF’s failed enterprises. This has raised questions about whether or not the company will be able to escape this mess unscathed.
BlockFi has attempted to distance itself from SBF’s companies, but it is clear that it will continue to be affected by the fallout from FTX’s collapse. The company has also failed to provide any details about the alleged $500 million round of funding that it is reportedly in the process of securing.
It remains to be seen whether BlockFi will be able to weather the storm and continue to provide crypto lending services. For now, the company will have to continue to deal with the aftermath of the FTX fiasco and its exposure to Sam Bankman-Fried’s failed enterprises.