BlockFi has around $355 million in crypto assets frozen in bankrupt crypto exchange FTX, the law firm handling the crypto lender’s own chapter 11 proceedings revealed.
The crypto firm filed for bankruptcy in the the District of New Jersey following weeks of speculation about the company’s solvency. The lender had been dependent on a $400 million line of credit from FTX, which itself finalized its bankruptcy proceedings last week.
READ: Another One Bites The FTX Dust: BlockFi To File For Bankruptcy, Cut Jobs
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Kirkland & Ellis’s Joshua Sussberg–who’s handling the bankruptcy proceedings–disclosed the crypto asset amount tied to FTX in court, adding that this is on top of a $671 million defaulted loan to FTX’s sister hedge fund Alameda Research.
“We intend, Your Honor, as we noted in the pleadings, to quickly file a motion to allow customers to withdraw from their personal wallet to the extent they so wish, because we do not believe that is property of the estate,” Sussberg said.
In leaked documents prior to filing, BlockFi is revealed to have reported it has more than 100,000 creditors, with total estimated liabilities between $1 billion – $10 billion. Also, in the list of creditors with the 50 largest unsecured claims, one for the firm’s creditors is the Securities and Exchange Commission listed down for $30 million–apparently from a settlement claim yet to be processed.
The firm also reportedly has about $257 million in cash on hand, most of which were liquidated crypto holdings.
The report comes weeks after BlockFi disclosed that it has positions in the now bankrupt exchange and extended loans to Alameda Research.
Back in June, FTX got close to acquiring BlockFi at a 99% discount—FTX was reportedly to pay just $25 million for BlockFi, which last summer held a valuation of $4.8 billion.
Information for this briefing was found via Coindesk and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
