BlockFi filed for bankruptcy in late November following the collapse of the FTX exchange.
Documents have been leaked regarding the financial statements of BlockFi, the cryptocurrency lending company that filed for bankruptcy on November 28. The documents reveal an exposure of more than $1.200 billion from BlockFi to companies created by Sam Bankman-Fried, the cryptocurrency exchange FTX and its investment arm, Alameda Research; both of which have declared bankruptcy.
According to CNBC, the leaked documents were not supposed to show the crypto lending company's financial statements. However, unredacted copies were mistakenly uploaded, exposing a previously unknown part of BlockFi's finances.
The crypto lender reportedly has $415,9 million in assets tied to FTX and another $831,3 million in loans made to Alameda Research.
The figures leaked in the report mentioned by CNBC, which totaling $1.247 billion dollars, suggest BlockFi's exposure to FTX is greater than initially assumed.
The data is from a leaked unedited presentation on BlockFi's financial status. The presentation was prepared by M3 Partners, one of the advisors to the crypto lender's creditors' committee, which is represented by law firm Brown Rudnick, CNBC clarified.
BlockFi has initiated a voluntary bankruptcy process in a New Jersey district court, seeking Chapter 11 protection in the United States. According to its statements, the bankruptcy process will give it the opportunity to “stabilize its business and provide the company with the opportunity to consummate a comprehensive restructuring transaction that maximizes value for all customers and other stakeholders.”
The company had established itself as one of the most important companies offering financial services with cryptocurrencies. By the time of its bankruptcy, BlockFi had over 662.400 registered customers worldwide, of which about 73% had cryptoasset investments of less than $1.000 in their accounts.
The leaked documents also revealed that BlockFi had revenues of $14 million between May and November 2022 from its crypto business.
Separately, two unknown sources told Bloomberg that BlockFi is planning to sell $160 million in loans backed by 68.000 Bitcoin mining rigs.
Continue reading: What has happened in 2022 in the crypto world?
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