BlockFi's Bankruptcy Tied to Risky Lending to Alameda and FTX

BlockFi's $1.2B Crypto Assets Tied to FTX Alameda Lead to Bankruptcy

Crypto lending firm BlockFi, which filed for bankruptcy in November 2022, had $1.2 billion in assets tied to FTX and Alameda Research. According to a filing by unsecured creditors, CEO Zac Prince allegedly ignored warnings from the risk management team about lending to Alameda, despite concerns about the risks involved. BlockFi's exposure to FTX and associated entities, including a $400 million credit line to FTX US, contributed to its downfall. BlockFi recalled loans from Alameda but then re-lent them nearly $900 million, mainly collateralized by FTX Token (FTT). BlockFi disputes the report, citing cherry-picked statements.