The BlockFi logo is shown on a phone screen and cryptocurrency is represented in this illustration photo taken in Krakow, Poland on November 14, 2022.
Jacob Borzycki | Norphoto | Getty Images
Bankrupt cryptocurrency firm BlockFi has more than $1.2 billion in assets tied up with Sam Bankman-Fried’s FTX and Alameda Research, according to previously redacted but erroneously uploaded financial statements Tuesday without redaction.
BlockFi’s exposure to FTX was greater than previous disclosures suggested. The company filed for Chapter 11 bankruptcy protection in late November, after the collapse of FTX, which had agreed to bail out the troubled lender before the collapse.
The balance shown in BlockFi’s unadjusted filing includes $415.9 million in FTX-related assets and $831.3 million in loans to Alameda. These numbers are as of January 14th. Both Bankman-Fried companies were encapsulated by the FTX bankruptcy in November, sending the cryptocurrency markets reeling.
BlockFi lawyers previously said that the loan to Alameda was valued at $671 million, while an additional $355 million of digital assets on the FTX platform were frozen. Bitcoin and ether have skyrocketed in value since then, driving up the value of those holdings.
The financial offer has been compiled by M3 Partners, a creditors’ committee advisor. The firm is represented by the law firm Brown Rudnick and consists entirely of BlockFi clients who are owed money by the bankrupt lender.
An attorney for the creditors’ committee confirmed to CNBC that the unredacted filing was uploaded in error but declined to comment further. BlockFi’s lawyers did not respond to a request for comment.
Other information now available regarding BlockFi includes their customer numbers and high level details of their account size as well as trading volume.
BlockFi had 662,427 users, of whom nearly 73% had an account balance of less than $1,000. In the six months from May to November last year, the cumulative trading volume of these clients was $67.7 million, while the total volume was $1.17 billion. BlockFi generated just over $14 million in trading revenue over that period, according to the presentation, with an average of $21 in revenue per customer.
The company had $302.1 million in cash, along with portfolio assets worth $366.7 million. The presentation shows that the cryptocurrency lender has nearly $2.7 billion in unmodified assets, with nearly half of that tied to FTX and Alameda.
BlockFi’s failure was precipitated by exposure to Three Arrows Capital, a crypto hedge fund that filed for bankruptcy protection in July. FTX had arranged a bailout for BlockFi, with a $400 million revolving credit facility, but that deal collapsed when FTX faced its own liquidity crisis and quickly sank into bankruptcy.
According to the latest financial data released by BlockFi, the value of both Alameda’s outstanding loan and FTX-related assets have been revised to $0. After all adjustments, BlockFi has only $1.3 billion in assets, of which only $668.8 million is described as “liquid/to be distributed.”
BlockFi’s 125 remaining employees are being paid handsomely as part of a proposed retention scheme designed to keep some people on board during the bankruptcy process, the filing shows.
The detained employees will collect a total of $11.9 million on an annual basis. Among the remaining employees are three successful client employees, each of whom will take home an annual average of over $134,000.
Five employees still working with the company earn an average of $822,834, according to the presentation, which shows that BlockFi’s retention plans are “larger than in similar cryptocurrencies.”
Watch: The collapse of FTX shakes the cryptocurrency to its core