BlockFi’s Financials Show $1.2B FTX Exposure

Update, October 2026: This article first appeared on 25 January 2023, when BlockFi’s unredacted financials were leaked. We have added how the case ended: after a settlement with the FTX estate and the sale of its FTX claims, BlockFi repaid 100 percent of allowed customer claims in US dollar terms.

BlockFi, a crypto lending company, had more than $1.2 billion in assets connected to FTX and Alameda Research, according to financial records that were mistakenly released without redactions on Tuesday. These records reveal that the company’s exposure to FTX was greater than what was previously disclosed. BlockFi filed for bankruptcy in November, following the collapse of FTX, which had agreed to save the struggling lender before it also failed.

The unredacted financial records show that BlockFi had $415.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda as of January 14th, 2023. Both FTX and Alameda were also included in FTX’s bankruptcy in November which harmed the crypto markets.

Earlier, lawyers for BlockFi had said that the loan to Alameda was valued at $671 million and an additional $355 million in digital assets were frozen on the FTX platform. However, the value of these holdings has since risen as Bitcoin and Ether prices have rallied.

These financial records were prepared by M3 Partners, an advisor to the creditor committee. The firm is represented by the law firm Brown Rudnick and is made up of BlockFi clients who are owed money by the bankrupt lender.

Why the FTX exposure mattered

BlockFi earned yield for its customers by lending their coins to trading firms, and Alameda Research was one of its largest borrowers. On top of that, BlockFi kept assets on the FTX exchange itself. When FTX stopped withdrawals in November 2022, both positions froze at once. BlockFi paused its platform and filed for Chapter 11 in New Jersey on 28 November 2022, because the money it was owed sat inside another bankruptcy. For the wider picture of that collapse see our FTX collapse timeline.

What happened next: BlockFi from 2023 to 2026

• March 2024: BlockFi agreed a settlement of about $874.5 million with the FTX and Alameda estates.
• 31 May 2024: the BlockFi web platform shut down. Remaining crypto distributions moved to Coinbase.
• July 2024: plan administrator Mohsin Meghji of M3 Partners sold BlockFi’s FTX claims at a premium to face value. That allowed a final distribution of 100 percent of eligible customer and general unsecured claims, measured in dollars.
• The catch: claims were valued at prices from the filing date in November 2022. Bitcoin and Ether had risen sharply since then, so customers paid out in crypto received fewer coins than they had deposited.
• 2025: the estate asked remaining clients to verify their identity by 15 May 2025. In April 2025 about 97 percent of US customers had claimed their money, but only 43 percent of customers outside the US.

What the BlockFi case teaches

BlockFi customers were lucky: the FTX estate recovered enough to make them whole in dollars, and that took almost two years. The structural lesson remains. Coins deposited with a lending platform become a claim against that platform, and the platform’s risk includes everyone it lends to. Holding coins yourself avoids that counterparty chain, see which hardware wallet makes sense now. A similar case with a longer payout path was Celsius.