FTX Holds $355M in Crypto Owned by BlockFi, Says Attorney
The negative momentum caused by the fall of the FTX empire appears to be becoming increasingly harmful. Several platforms were significantly impacted, including FTX-acquired firm, BlockFi. It was revealed yesterday that the platform was suing FTX’s former CEO, Sam Bankman-Fried, after filing for Chapter 11 bankruptcy.
In addition, the bankruptcy filing disclosed that the troubled cryptocurrency lender has over 100,000 creditors. The liabilities and assets span from $1 billion to $10 billion, according to the details.
In one of the recent details let out, it was unveiled that BlockFi has about $355 million frozen on FTX.
BlockFi has over $355 million frozen on FTX
As per the details given by attorney Joshua Sussberg, about $355 million worth of cryptocurrencies are stuck on Fried’s FTX exchange. The $355 million is different from the additional $671 million in loans provided to Alameda Research.
The bankruptcy filing also reveals that BlockFi still owes FTX US $275 million. According to the specifics, it had significant exposure to FTX.
“We intend your honor, as we noted in the pleadings, to quickly file a motion to allow customers to withdraw from their personal wallet to the extent they so wish, because we do not believe that is property of the estate,” Sussberg, a partner at law firm Kirkland & Ellis, stated.
Sussberg also conveyed to the New Jersey judge that taking out the funds from FTX will be a lengthy process.