For example, previously redacted financials posted on Tuesday sans the redactions revealed that the defunct crypto lender BlockFi had approximately $1.2 billion in assets linked to Sam Bankman-FTX Fried’s and Alameda Research.
The risk of FTX for BlockFi was higher than previously reported. Following the failure of FTX, which had committed to save the ailing lender before its own downfall, the firm filed for Chapter 11 bankruptcy protection in late November.
The uncensored BlockFi report shows a total of $831,3 million, with $415,9 million related to FTX assets and $831.3 million in loans to Alameda. The 14th of January is the day on which those numbers were compiled. The bankruptcy of FTX in November included both of Bankman-companies, Fried’s sending the cryptocurrency markets into a tailspin.
BlockFi’s attorneys previously said that the loan to Alameda was worth $671 million, and that the digital assets blocked on the FTX platform were worth an extra $355. Since then, the price of bitcoin and ether has increased, increasing the worth of those assets.
M3 Partners, a consultant to the creditor committee, compiled the financial presentation. Brown Rudnick is representing the group, which consists exclusively of individuals who are owed money by the insolvent lender BlockFi.
CNBC was told by a lawyer for the creditor committee that the document was posted without redactions. The counsel for the creditor committee, however, refused to elaborate. BlockFi’s legal counsel did not return a call seeking comment.
There is also new data accessible about BlockFi, such as the number of users, some basic statistics on the size of user accounts, and the amount of trades conducted via the platform.
The majority (73%) of BlockFi’s 662,427 users had balances of less than $1,000 at the time of writing. Those customers accounted for a total trading volume of $67.7 million, out of a total volume of $1.17 billion, over the six-month period from May to November of last year. According to the presentation, BlockFi generated over $14.1 million in trading income over that time period, with an average of $21 in revenue per client.
With a total of $366.7M in wallet assets, the corporation has $302.1M in cash on hand. According to the presentation, the crypto lender has unadjusted assets of about $2.7 billion, with nearly half associated with FTX and Alameda.
BlockFi’s demise was caused by the company’s exposure to Three Arrows Capital, a crypto hedge fund that declared bankruptcy in July. When FTX had a liquidity difficulty and quickly went bankrupt, the $400 million revolving credit arrangement it had established to save BlockFi collapsed.
All of BlockFi’s assets related to FTX and the Alameda loan receivable have been written down to zero, as per the most recent financial statements. BlockFi’s adjusted total assets are slightly under $1.3 billion, with just $668.8 million classified as “Liquid / To Be Distributed.”
The petition reveals that BlockFi is offering generous compensation packages to its remaining 125 workers in an effort to retain some staff on board throughout the bankruptcy.
Wages for the kept workers add up to $11.9 million each year. Three client success workers remain on staff, and they will earn an average of more than $134,000 apiece this year.
According to the presentation, BlockFi’s retention “plans are bigger than other crypto instances,” with five workers staying with the firm making an average of $822,834.