BlockFi was taken down by exposure to FTX and Alameda Research, the latter of which defaulted on $680 million of collateralized loan obligations, according to a bankruptcy filing.
Despite a series of margin calls and recalls of open-term loans with FTX and Alameda, the filing claims BlockFi could not avoid being caught up in the collapse of those firms.
In early November, BlockFi made a borrowing request on its loan agreement with FTX, which was not honored. Alameda also defaulted on approximately $680 million of collateralized loan obligations with BlockFi, according to the filing.BlockFi received unaudited quarterly financial statements and crypto wallet addresses from Alameda as part of its credit evaluation process, the filing notes.
It also had regular dialogue with Alameda staff, who "made ongoing representations regarding its financial standing, significant equity capital, and unencumbered assets on Alameda’s balance sheet."
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