The FTX saga seems to have no end. Recent financial documents revealed that BlockFi, the bankrupt cryptocurrency lender, had over $1.2 billion worth of assets tied to Sam Bankman-Fried’s FTX and Alameda Research. These financials were previously censored, however, the uncensored documents were accidentally uploaded on Tuesday.
FTX had previously revealed plans to rescue BlockFi when the firm went underwater following the implosion of Terra. However, BlockFi filed for bankruptcy when FTX itself collapsed. The extent of BlockFi’s exposure to the exchange and its sister company Alameda Research was previously unknown.
According to the new financials, as of Jan 14, BlockFi assets connected to FTX are worth $415.9 million. Meanwhile, loans to Alameda amount to $831.3 million. Previously, lawyers representing BlockFi said the loan to Alameda was worth $671 million. Moreover, they claimed there are $355 million in frozen digital assets on the exchange. The value of Bitcoin (BTC) and Ethereum (ETH) has increased since the document’s filing date, hence, the value of the assets has increased.
BlockFi has assets totaling slightly under $1.3 billion after all adjustments. Of all assets, only $668.8 million is categorized as “Liquid / To Be Distributed.”
The document reveals that BlockFi’s 125 active employees are being paid generously. Some employees were kept on board as part of the firm’s retention plan. The combined compensation for the retained workers will total $11.9 million per year. According to the presentation, the average salary of the five workers who are still working for the firm is $822,834, demonstrating that BlockFi’s retention plans are bigger than comparable crypto situations.
Feds seize $50 million Farmington State Bank tied to FTX boss
According to court documents, federal prosecutors claim that $50 million was confiscated from the one-branch Farmington State Bank. Prosecutors claim the assets were part of SBF’s elaborate plot to swindle investors through the FTX exchange.
According to court records, the money was confiscated on Jan 4 as part of a multicount indictment. Prosecutors said that as part of that inquiry, Bankman-Fried deposited several million dollars at Farmington State Bank, the 26th-smallest bank in America.
Investigators reportedly confiscated $49,999,500 from the bank. The amount was under Moonstone Bank, in an account under the name “FTX Digital Markets.” The $50 million confiscation would be more than half of the estimated $98.9 million in total assets that were being kept in the bank till September 2022.