How much exposure does BlockFi have to Sam Bankman-Fried failed enterprises? A lot, according to accidentally leaked financials. 3867 Total views 23 Total shares Listen to article 0:00 Newsletter Own this piece of history
Collect this article as an NFT Crypto lender BlockFi has had a highly tumultuous 12 months. After getting caught up in the Terra fiasco, which resulted in one of the most prolific asset death spirals of all time, the company managed to avoid bankruptcy after receiving a $400 million lifeline in July 2022. The problem? Its lender was FTX US, and we all know what happened next.
Although BlockFi has attempted to separate itself from Sam Bankman-Frieds fraud in the aftermath of FTXs collapse, its secret financials tell a different story.
This weeks Crypto Biz delves into BlockFis uncensored financials, the likelihood of Celsius token ever seeing the light of day and the latest high-profile funding deal in blockchain. Breaking: BlockFi uncensored financials reportedly shows $1.2B FTX exposure
Just how bad are BlockFis financials? For starters, the bankrupt crypto lending firm reportedly has $1.2 billion in assets tied up in Sam Bankman-Frieds failed companies FTX and Alameda Research, to be specific. According to CNBC, BlockFi made these details public by accident, adding insult to injury. Nevertheless, the documents show that the company had $315.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda as of Jan. 14. Although BlockFi has attempted to separate itself from SBFs companies, it looks like itll continue to circle the same drain as FTX and Alameda. BlockFi to sell $160M in Bitcoin miner-backed loans: Report
BlockFi is reportedly looking to sell $160 million in loans backed by 68,000 Bitcoin (BTC) miners as part of its bankruptcy proceedings. That sounds like a good strategy to raise liquid funds, right? Unfortunately, some of these loans have already defaulted and are likely undercollateralized following Bitcoins year-long bear market. A legal expert interviewed by Cointelegraph cautioned that the loans are probably not worth their paper value anymore. Lets hope for BlockFis sake that the value of the mining equipment used in the collateral isnt worth less than the value of the loans. New Celsius token may be used to repay creditors: Report
Months before FTX collapsed, crypto lender Celsius filed for bankruptcy after its degen crypto portfolio failed to survive the bear market. Billions in customer deposits now hang in the balance as the company looks for an optimal reorganization strategy. This week, it was reported that Celsius was considering issuing its own token to repay creditors. Of course, this means relaunching its platform. Apparently, Celsius wants to wrap this up in a new publicly-traded company that is properly licensed. Im not sure Alex Mashinsky will ever succeed in crypto again, but heres hoping Celsius creditors get something in return for trusting him in the first place.
BREAKING NEWS
– #CelsiusNetwork is looking at having a stratefied recovery smaller holders bellow 5k might get all assets to leave.
– Larger holders will get a debt token that seems to represent all the value, so you can sell if you dont believe in the company or recovery. CelsiusFactsNumbers (@CelsiusFacts) January 24, 2023 Injective launches $150M ecosystem fund to boost DeFi, Cosmos adoption
If youre looking for a silver lining in crypto this week, take solace in the fact that companies are once again raising hundreds of millions in venture capital (VC). Chief among them is Injective, the layer-1 blockchain protocol built on Cosmos SDK. This week, Injective announced a $150 million ecosystem fund backed by Pantera Capital, Kraken Ventures, Jump Crypto, KuCoin Ventures, Delphi Labs and others. The fund will support developers building on the Cosmos network specifically infrastructure solutions, trading platforms and proof-of-stake technology. Will crypto VC rebound strongly in 2023? Only time will tell. Before you go: Why is crypto pumping?
Bitcoins price crawled back above $23,000 this week and appeared to have entered a higher range raising cautious optimism that the bottom is in. But does anyone know why BTC and the broader crypto market are pumping? In this weeks Market Report, I sat down with fellow analysts Marcel Pechman and Joe Hall to discuss whether the current pump is sustainable. We also explored what could be in store for digital assets in the coming months. You can watch the full replay below:
Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday. #Business #Funding #Venture Capital #Bankruptcy #Celsius Related News What is Solana (SOL) Pay, and how does it work? Africa Web3 games publisher Carry1st raises $27M Former FTX US president raises $5M for new crypto software firm Blockchain developer QuickNode raises $60M at $800M valuation Injective launches $150M ecosystem fund to boost DeFi, Cosmos adoption
