Zac Prince, CEO of bankrupt crypto lending company BlockFi, testified on the trial of SBF last Friday. He said it was FTX and Alameda that made BlockFi fail. The lender lost around $1 billion due to its involvement in FTX and Alameda.
According to Prince's testimony, as of May 2022, BlockFi offered over $1 billion in loans to Alameda. Due to the losses on Terra, BlockFi asked to get the loans back, and Alameda did repay the loans. However, between July and November 2022, Alameda got around $850 million worth of new loans from BlockFi, using tokens including $FTT as collateral. Prince said Alameda provided multiple quarterly balance sheets, showing it had a large sum of liquid assets and was solvent. When the trading company collapsed, it still had around $650 million in outstanding loans from BlockFi.
It was not the only loss BlockFi suffered from SBF. The lender not only deposited Alameda's collateral to FTX, but also deposited $350m of customer funds to its FTX account. When FTX went bankrupt, BlockFI had a total exposure of over a billion dollars.
To learn more, please read: the Trial of SBF
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