BlocksInform
Blockfi, already shaken by a previous 3ac exposure, had to declare bankruptcy under Chapter 11 shortly after the fall of the FTX Group, take a significant number of societies linked to cryptography with it.
The relationship between the FTX group and blockfi cut both ways – on the one hand, the stock market had formerly extended a blockfi line of credit, which, at the time, was shaken by the breakdown of 3ac. on the other hand, the crypto lender had a portion of its assets on the ftx platform and loaned money to the alameda search. Put together, these amounts substantially exceed the amount FTX could have lent to BlockFi.
More than $1.2 billion associated with SBF businesses.
Due to the recent recovery of Bitcoin, the value of BlockFi's loans and holdings with the FTX Group has increased from the value shown in the original bankruptcy deposit. The leaked report indicates that a total of $415.9 million in blockfi assets are currently frozen in ftx accounts.
A further $831.3 million worth of now-frozen assets was loaned out to Alameda, adding up to a whopping $1.2 billion that BlockFi cannot access in order to make creditors whole, as reported by CNBC.
Additionally, the lender has also filed a lawsuit against Emergent Fidelity Technologies Ltd, SBF’s company set up to hold his shares in Robinhood. A portion of those shares would have been pledged for certain blockfi assets lent to the ftx group, the same sbf shares are trying to sell to finance its legal defense against ftx creditors.
A disclosure discloses information about user data holdings.
The disclosed document, which was prepared by M3 Partners for demonstration purposes, was originally to be redacted before it could be made public. Fortunately, it does not reveal any personal information about the users of blockfi.
However, it does reveal important bird’s eye view info on creditor deposits, indicating that BlockFi had 662,427 customers when it went under.
73% of accounts held $1k worth of assets or less, with a further 20% holding between $1k and $10k. Approximately one percent of clients held between $50,000 and $250,000, and less than one percent of Blockfi clients held $250,000 or more in their accounts.
The disclosed report also provides information on cumulative trade volumes, balances, and activity, Fortunately, the identity of individual users is not revealed, although it may be assumed for higher levels, went the extra mile.
BlockFi's bankruptcy proceedings continue, in an effort to keep the rig afloat and ultimately come back stronger, if possible.
