Crypto Biz: A peek into BlockFi’s secret financials (it’s not pretty)
Crypto lender BlockFi has had a highly tumultuous 12 months. After getting caught up in the Terra fiasco, which resulted in one of the most prolific asset death spirals of all time, the company managed to avoid bankruptcy after receiving a $400 million lifeline in July 2022. The problem? Its lender was FTX US, and we all know what happened next.
Although BlockFi has attempted to separate itself from Sam Bankman-Fried’s fraud in the aftermath of FTX’s collapse, its secret financials tell a different story.
This week’s Crypto Biz delves into BlockFi’s uncensored financials, the likelihood of “Celsius token” ever seeing the light of day and the latest high-profile funding deal in blockchain.
Just how bad are BlockFi’s financials? For starters, the bankrupt crypto lending firm reportedly has $1.2 billion in assets tied up in Sam Bankman-Fried’s failed companies — FTX and Alameda Research, to be specific. According to CNBC, BlockFi made these details public by accident, adding insult to injury. Nevertheless, the documents show that the company had $315.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda as of Jan. 14. Although BlockFi has attempted to separate itself from SBF’s companies, it looks like it’ll continue to circle the same drain as FTX and Alameda.
BlockFi is reportedly looking to sell $160 million in loans backed by 68,000 Bitcoin (BTC) miners as part of its bankruptcy proceedings. That sounds like a good strategy to raise liquid funds, right? Unfortunately, some of these loans have already defaulted and are likely undercollateralized following Bitcoin’s year-long bear market. A legal expert interviewed by Cointelegraph cautioned that the loans are probably “not worth their paper value
Read more on cointelegraph.com
