Last Updated on 1 min by John Piper

BlockFi, a cryptocurrency lending company, recently filed for bankruptcy. Financial data shows $1.2 billion worth of assets that are linked to the bankrupt exchange FTX, and Alameda Research, its related trading platform. This information was leaked by M3 Partners, an advisor of the creditor committee.

BlockFi’s financials leaked show that as of January 14, BlockFi owned $415.9 Million in assets linked to FTX, and $831.3 Million in loans to Alameda.

These numbers are much higher than the Nov. 24 reported figures, which showed that BlockFi had $355m in FTX and $680 in loans for Alameda. It is important to note that the assets have appreciated with Bitcoin’s ($BTC) price since then, but not at the same rate as the financial data.

BlockFi tried to separate itself from the ill-respected FTX during bankruptcy proceedings. However, the financial ties have made it difficult for BlockFi not to be completely independent from Alameda or FTX.

The presentation revealed that, despite their limited assets, the company is looking to pay $12.3 million to key employees in retention payments. The creditor committee objected to the payment, arguing that they are inappropriate given the company’s current financial position.

BlockFi declares bankruptcy

BlockFi filed for Chapter 11 bankruptcy in November. It cited the collapse of FTX – which had occurred just a few days before – as the reason for its liquidation worries. BlockFi has faced many challenges since then. One of these is a lawsuit brought by creditors to seek collateral the firm promised to pay within the first week in November. This collateral includes shares in Robinhood, a crypto-firm.

The bankruptcy case of BlockFi is complex. There are many moving parts related to FTX, as well as legal ramifications. The outcome will depend on a number of factors including the outcome of lawsuits, the company’s assets, and its debt.

Over the years, big crypto companies have filed for bankruptcy

BlockFi has not been the first to file for bankruptcy since the inception of Bitcoin and the trade exchanges within the industry. There have been many high-profile bankruptcy filings over the years.

Mt. Mt.

It was once the most important cryptocurrency exchange, processing more than 70% of all Bitcoin transactions. The exchange filed for bankruptcy in 2014 after it lost 850,000 bitcoins (worth approximately $450 million) to hackers.

QuadrigaCX

After Gerald Cotten, the founder and CEO of the Canadian cryptocurrency exchange, suddenly died, the company filed for creditor protection. It was discovered that Cotten was the only person who had cold wallet access, leading to the loss $190 million in customer funds.

BitGrail

After losing 17 million Nano tokens (XRB) in a hack, this Italian cryptocurrency exchange declared bankruptcy.

Coincheck

After losing more than $500 million in NEM tokens in a hack, this Japanese cryptocurrency exchange declared bankruptcy.

Cryptopia

After suffering a hack that caused the loss of approximately $16 million in assets, this New Zealand-based cryptocurrency exchange filed to liquidate in 2019.

Coin Insider’s first article, BlockFi financial leaks reveal $1.2 billion in FTX links, appeared first on Coin Insider.