BlockFi’s bankruptcy was the result of its exposure to Three Arrows Capital, a cryptocurrency hedge fund that filed for bankruptcy in July. Later, FTX negotiated a rescue plan for BlockFi, although the loss of liquidity in FTX’s own crisis ended up weakening the revolving credit line of 400 million dollars and caused the cancellation of the agreement.
The CNBC report also said that Alameda’s loan receivable and assets connected to FTX have been adjusted to $0, leaving BlockFi with more than $1.3 billion in total assets. Of that total, only $668.8 million is categorized as “Cash/To be distributed.”
BlockFi’s remaining 125 employees will be generously compensated under a proposed retention plan, according to the filing. Added annual compensation for these employees will total a grand total of $11.9 million.
BlockFi has plans to sell $160 million in loans backed by around 68,000 Bitcoin mining machines. (CRYPTO: BTC) as part of bankruptcy proceedings, Bloomberg reported on Monday.
Source: Ambito
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