BlockFi, the bankrupt cryptocurrency lending firm, has inadvertently revealed financials indicating $1.2 billion in assets tied up with the embattled FTX and Alameda Research.
What Happened: According to a report from CNBC, filings that had previously been redacted but were mistakenly uploaded on Tuesday without the redactions reveal that BlockFi had $415.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda, as of Jan. 14.
BlockFi’s collapse was caused by its exposure to Three Arrows Capital, a crypto hedge fund that filed for bankruptcy protection in July. Subsequently, FTX negotiated a rescue plan for BlockFi, though the loss of liquidity in FTX’s own crisis ultimately weakened the $400 million revolving credit facility and caused the elimination of the deal.
See More: Best Crypto Day Trading Strategies
The CNBC report added that the Alameda loan receivable and assets connected to FTX have been adjusted to $0, leaving BlockFi with over $1.3 billion in total assets. Of the total, only $668.8 million are categorized as “Liquid / To Be Distributed.”
BlockFi’s 125 remaining employees will be handsomely compensated under a proposed retention plan, according to the filing. The aggregate annual compensation for these employees will amount to a grand total of $11.9 million.
BlockFi has plans to sell off $160 million in loans backed by around 68,000 Bitcoin (CRYPTO: BTC) mining machines as part of bankruptcy proceedings, Bloomberg reported on Monday.
BlockFi responded to Benzinga in an email late on Wednesday, saying it had disclosed “accurate information to the Court as part of our Statement of Financial Affairs, which was filed on Jan. 12.”
“Throughout the chapter 11 process, BlockFi has prioritized transparency and stating that these numbers are “secret financials” is inaccurate.”
Price Action: At the time of writing, BTC was trading at $22,622 down 1.82% in the last 24 hours, according to Benzinga Pro.
Read Next: Bitcoin, Ethereum, Dogecoin Slide: Analyst Says Apex Crypto In For ‘Very Interesting’ Rally Or Short-Term Pullback