FTX Holds $355M in Crypto Owned by BlockFi, Says Attorney

Vignesh Karunanidhi
FTX Holds $355M in Crypto Owned by BlockFi, Says Attorney
Source: Coingape

The negative momentum caused by the fall of the FTX empire appears to be becoming increasingly harmful. Several platforms were significantly impacted, including FTX-acquired firm, BlockFi. It was revealed yesterday that the platform was suing FTX’s former CEO, Sam Bankman-Fried, after filing for Chapter 11 bankruptcy.

In addition, the bankruptcy filing disclosed that the troubled cryptocurrency lender has over 100,000 creditors. The liabilities and assets span from $1 billion to $10 billion, according to the details.

In one of the recent details let out, it was unveiled that BlockFi has about $355 million frozen on FTX.

BlockFi has over $355 million frozen on FTX

As per the details given by attorney Joshua Sussberg, about $355 million worth of cryptocurrencies are stuck on Fried’s FTX exchange. The $355 million is different from the additional $671 million in loans provided to Alameda Research.

The bankruptcy filing also reveals that BlockFi still owes FTX US $275 million. According to the specifics, it had significant exposure to FTX.

“We intend your honor, as we noted in the pleadings, to quickly file a motion to allow customers to withdraw from their personal wallet to the extent they so wish, because we do not believe that is property of the estate,” Sussberg, a partner at law firm Kirkland & Ellis, stated.

Sussberg also conveyed to the New Jersey judge that taking out the funds from FTX will be a lengthy process.