BlocksInform
A CNBC report claims that BlockFi has over $800 million in loans to Alameda Research and $416 million in assets connected to the bankrupt exchange FTX
According to CNBC, these numbers are valid as of Jan. 14, 2023, and are not shown in previously redacted financials. Blockfi credit board counsel m3 partners compiled the report.
BlockFi Defends Transparency in Financial Report
BlockFi first said that Alameda's loan was worth $671 million, with a further $350 million in crypto assets on FTX that were frozen after the company declared bankruptcy. The increase in the value of those two figures.
According to the , blockfi had around 300 million dollars in cash and held 367 million dollars in crypto portfolios in mid-January 2023. Subsequent financial statements indicate that the lender had $1.3 billion in assets, of which approximately half are liquid.
Blockfi told the bloc he was always transparent and denied that the leaked report revealed any "secret" financial information. The lender declared bankruptcy pursuant to Chapter 11 at the end of November 2022.
At their peaks, FTX and former CEO Sam Bankman-Fried had looked to bail out several crypto firms stung by the collapse of the TerraUSD stablecoin ecosystem, extending a $400 million credit line to BlockFi.
BlockFi recently sued Sam Bankman-Fried for 56 million shares of Robinhood as collateral for a BlockFi loan to Alameda before FTX failed on November 11, 2022. Bankman-fried is said to have borrowed money from alameda to purchase the shares by emerging loyalty, where he held a 90% stake.
Federal prosecutors in the United States have recently seized shares as they accumulate until October of this year. 2023, where he was alleged to have committed fraud and money laundering. He is essentially under house arrest at his parents’ Palo Alto, California home.
Elizabeth Warren Tirade Reveals More of the Same
After the FTX collapse, several U.S. lawmakers have exposed or reinforced their stance on cryptocurrencies.
Tom Emmer (R-Minnesota), a firm crypto proponent and the host of the first cryptocurrency town hall, has championed the potential of Web 3 in the creator economy together with Rep. Ro Khanna (D-California).
Sense. Elizabeth Warren (D-Massachusetts) and Bernie Sanders (D-Vermont) co-authored legislation to make it more difficult for banks to enter the crypto space. Warren wrote one for the Wall Street Journal shortly after FTX broke down, Calling for tougher crackdowns on crypto fraud on the part of the Securities and Exchange Commissions in the United States, the United States Department of Justice, The Treasury Department of the United States.
These feelings during the US event on economic freedoms and the Americans for financial reform on January 25, 2023.
1:30PM: We'll kick off an event with @RealBankReform@SenWarren to examine the rise and fall of the crypto industry — and what it means for policymakers.
RSVP here. I don't think you want to miss it.https://t.co/nj8xsJbPurpic.twitter.com/A1saROKeZU
— American Economic Liberties Project (@econliberties) January 25, 2023
It also rejected Celsius's former CEO, Alex Mashinsky's demands for economic empowerment.
"They're talking about innovation, financial inclusion, the giants of the cryptography industry, be it ftx to celsius or travel, are crumbling under the weight of their own fraud, deceit and gross maladministration," she told the event.
While praising the SEC’s recent numerous enforcement acts in the last year, she said Congress must give the agencies greater enforcement power, concluding that the crypto industry’s ability to deliver on its promises of innovation amid strict enforcement will improve its credibility.
