BlockFi CEO ignored risks from FTX and Alameda exposure, contributing to collapse: court filing

BlockFi CEO ignored risks from FTX and Alameda exposure, contributing to collapse: court filing



BlockFi, a crypto lending company that filed for bankruptcy in November 2022, had approximately $1.2 billion worth of assets connected to FTX and Alameda Research. According to a filing made on July 14th with the United States Bankruptcy Court, the CEO of BlockFi, Zac Prince, allegedly ignored warnings from the company's risk management team about lending assets to Alameda Research.



The risk management team had expressed concerns about the high risks involved in lending assets to Alameda. Prince reportedly dismissed these concerns when BlockFi lent $217 million to Alameda by August 2021. The team had warned about potential risks if the FTX Tokens used as collateral for the loans needed to be liquidated.



The filing stated that as early as August 2021, BlockFi's risk management team was informed that Alameda had a significant


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#Adoption, #Alameda, #Altcoin, #Bitcoin, #Blockchain, #BlockFi, #Cryptocurrency, #Cryptomarket, #Cryptonewstoday, #Ethereum, #FTX, #News, #Regulations

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