BlockFi has $355 million in digital assets ‘frozen’ on FTX 

Quick Take

  • Crypto lender BlockFi has $355 million in digital assets stuck on FTX, a lawyer said in bankruptcy court.
  • BlockFi filed for bankruptcy protection this week, not long after FTX collapsed earlier in November.
  • An attorney for the troubled lender provided new details around the firm’s financial relationship with FTX sister trading firm Alameda Research. 

Troubled crypto lender BlockFi has $355 million in digital assets frozen on FTX’s platform, the company said in court.

BlockFi attorney Joshua Sussberg also shared new details about how closely intertwined BlockFi’s finances were with FTX and the company's sister trading firm, Alameda Research.

“In addition to the loan arrangement, and the $275 million that was drawn, BlockFi acted as a lender to Alameda, which is an FTX trading subsidiary, and they also had crypto on the FTX platform,” Sussberg said in court. “Specifically, BlockFi had $671 million in outstanding loans that are defaulted to Alameda and $355 million in digital assets that, unfortunately, are now frozen on the FTX platform.”

BlockFi filed for bankruptcy protection this week, becoming the latest firm to face financial turmoil after the collapse of one of the world’s largest crypto exchanges. 

FTX, once valued at $32 billion, filed for bankruptcy protection in Delaware earlier this month. The firm had given BlockFi a $275 million loan earlier this year, and was listed as BlockFi’s second-largest creditor in bankruptcy filings.

BlockFi also has a considerable amount of cash stuck on FTX, a lawyer for the firm said in a New Jersey courtroom. BlockFi has $355 million in digital assets that are “frozen” on the platform, according to Sussberg. 

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

In a letter sent to BlockFi customers, the company noted that the court “approved multiple motions that will
enable BlockFi to continue core operations during this process, including granting us the authority to pay our critical vendors and  employee wages.”

As recently happened in the FTX bankruptcy case, the presiding judge agreed to keep BlockFi's creditors anonymous on a temporary basis. The recent disclosure of customer asse