BlocksInform
An ftx loan last year saw the equity of blockfi executives erased by a total of 800 million dollars – in return for which they agreed to pay increases of as much as $500,000 each, filings show.
A statement of financial affairs for the crypto lender, filed Thursday, contains thousands of pages of transactions that took place in the run up to its collapse, with gross revenue of over $4 million for 2022 until its collapse on Nov. 28.
Following last June's crypto winter, FTX offered a $400 million BlockFi loan. Ftx's failure on Nov. 11 sent a shockwave through the industry – and the filing details the impact of the June transaction on 13 of BlockFi’s top executives.
“The massive impact of the FTX operation on management equity has led the BlockFi board to, in particular, increase base salaries and make retention payments for those who have remained in the interest of maintaining the essential knowledge and capabilities of the business," said the depository, done by the New Jersey Bankruptcy Court's BlockFi attorneys.
Founder and CEO zac prince, for example, the equity value of $413 million has been removed, and was offset by a $250,000 to $400,000 raise in salary, while others received up to $560,000 in increments, the documents indicated.
BlockFi lawyers have been at pains to stress that – unlike other cases such as Celsius – there were no last-minute panicky withdrawals by senior executives from the company before its collapse.
No member of the BlockFi management team withdrew any cryptocurrency from the platform after Oct. 14, the deposit says, and the management team accounted for only 0.15 percent of the $7.7 billion in retail withdrawals during the year.
However, the deposits show significant withdrawals by senior management, including more than $9 million withdrawn from the platform per prince in April, According to the report, federal and state taxes were payable, and its $870,000-plus withdrawal in August.
Most transaction data is anonymized, with the court due to consider next week whether to unseal creditor information. In a parallel hearing Wednesday, a Delaware judge agreed FTX customer names can remain secret for three months.
