Bankrupt crypto lending firm BlockFi has reportedly uploaded uncensored financials by mistake, revealing $1.2 billion in assets tied up with bankrupt exchange FTX and irelated trading firm Alameda Research.
According to a Jan. 24 report from CNBC, the unredacted filings show that as of Jan. 14, BlockFi had $415.9 million worth of assets linked to FTX and a whopping $831.3 million in loans to Alameda.
The previously censored financials were leaked as part of a presentation put together by M3 Partners, which is an advisor to the creditor committee and has reportedly admitted the filing was uploaded in error.
The correctly redacted Nov. 24 declaration relates to the creditor committee's objection that BlockFi is seeking to pay key employees $12.3 million in retention payments despite their limited operations and assets.
According to a subsequent filing, the redacted portions include “trade secret[s] or confidential research, development, or commercial information.”
On Nov. 29, during the first-day hearing of its bankruptcy proceedings, BlockFi’s lawyers said the figures were $355 million stuck on FTX and $680 in loans to Alameda, but the value of the funds has increased with the price of Bitcoin (BTC) since then.
While BlockFi has attempted to separate itself from FTX and Alameda throughout its bankruptcy proceedings the state of financial obligations between the firms is complicated.
On July 1, FTX US — FTX’s U.S. arm — extended a $400 million line of credit to BlockFi after the lender was caught up in the contagion caused by the collapse of Terra’s algorithmic stablecoin on May 10.
The loan is set to expire on June 30, 2027, and has an interest rate of 5%.
The deal also provided FTX US with the option to acquire BlockFi for “a variable price of up to $240 million based on performance triggers.”
On Nov. 28, BlockFi also sued a holding company of Sam Bankman-Fried’s, Emergent Fidelity Technologies, seeking collateral that the firm had pledged to pay on Nov. 9, including shares in the online brokerage Robinhood.
BlockFi filed for Chapter 11 bankruptcy on Nov. 28, citing the collapse of FTX just weeks earlier as the cause of its financial troubles.
Cointelegraph contacted BlockFi and M3 Partners for comment but did not immediately receive a response.