BlockFi Could Gain $1 Billion in FTX Recovery: Bankrupt Crypto Lender Moves On

16. Mai 2023 Aus Von admin

• BlockFi is a crypto lender that recently announced it would proceed with liquidation due to the regulatory uncertainty in the U.S.
• The company has claims on several crypto entities, including FTX and Alameda, which could add over $1 billion to its balance sheet if successful.
• BlockFi still owes millions of dollars in fines to the SEC and NASSA.

Blockfi’s Recent Liquidation Announcement

Crypto lender BlockFi recently announced that it would go ahead with the liquidation process due to the ongoing uncertainty around the regulatory landscape in the U.S. The company decided so as it couldn’t sell its business in the U.S.

Recovery Possibility from Crypto Entities

The crypto lender filed for Chapter 11 proceedings in November 2022 as a result of the collapse of FTX – a top crypto exchange at the time. BlockFi had loaned Alameda $831.1 million and had assets worth $415.9 million linked to FTX. A filing, published on 12 May, stated that the company could add more than $1 billion to its balance sheet if it could recover assets from FTX and other bankrupt firms like Three Arrows Capital and Core Scientific, among others

Fines Owed To Regulatory Authorities

BlockFi still owes millions of dollars to SEC and NASAA Bankrupt crypto lender – BlockFi – also has to pay out fines received from regulatory authorities like U.S Securities and Exchange Commission (SEC) which fined them $100 million early 2021 but later reduced this amount down to $30 million .

Assets Resting In Hands Of DOJ

The platform immediately moved to recover its assets from FTX which included Sam Bankman-Fried’s Robinhood shares worth $575 million currently resting in hands of U.S Department of Justice with Robinhood seeking buy back these shares


Successful litigation against FTX and Alameda could be big boost for BlockFi’s balance sheets however recovery will entirely depend on success or failure of prosecuting or defending against disputes with commercial counterparties mentioned earlier .