Bankrupt Crypto firm BlockFi has revealed that digital assets worth $355 million have stuck on FTX after the leading cryptocurrency exchange filed for bankruptcy protection.
Joshua Sussberg, an attorney from BlockFi shared these details during the court hearing. He further detailed the financial connections and transactions with Alameda Research, an FTX subsidiary trading firm.
According to Joshua, BlockFI had $671 million outstanding loans to Alameda and digital assets worth $355 million that have been frozen on FTX due to recent developments.
In June this year, BlockFi secured $250 million revolving credit from FTX after facing a liquidity crunch due to volatile market condition.
FTX was listed as the largest creditor to BlockFi in the bankruptcy filing. The cryptocurrency trading firm has loaned $275 million to BlockFi this year.
Cryptocurrency firm FTX, once a leading competitor of top crypto exchange Binance, filed for bankruptcy protection early this month in Delaware court. FTX bankruptcy has impacted BlockFi due to intertwined financials with Alameda research.