[–] jcook2004 3y ago ↗ BlockFi lending desk uses ~$1.7 billion of depositor funds and deploys capital to Grayscale to participate in GTBC’s NAV premium trade……and also extends Alameda a $680 million loan collateralized by now worthless FTT tokens……while BlockFi’s trading desk deploys $355 million to the FTX exchange..…unfortunately, BlockFi’s risk management team failed to see the GBTC/3AC crypto winter and loses almost ~$1 billion of depositor funds…..but to avoid bankruptcy FTX extends a $400 million credit facility to BlockFi collateralized by the now worthless FTT tokens…..only to have Alameda Research caught in its own liquidity crunch vis-a-vis the downward pressure of the FTT ponzi token…..to stop the bleeding SBF personally guarantees Alameda’s $680 million loan via his Robinhood stake…….through a shell company called Emergent……which legally operates at arm’s length from FTX……but is controlled by SBF…and funded by FTX revenues!
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[ 1.1 ms ] story [ 10.1 ms ] thread…and also extends Alameda a $680 million loan collateralized by now worthless FTT tokens…
…while BlockFi’s trading desk deploys $355 million to the FTX exchange..
…unfortunately, BlockFi’s risk management team failed to see the GBTC/3AC crypto winter and loses almost ~$1 billion of depositor funds…
..but to avoid bankruptcy FTX extends a $400 million credit facility to BlockFi collateralized by the now worthless FTT tokens…
..only to have Alameda Research caught in its own liquidity crunch vis-a-vis the downward pressure of the FTT ponzi token…
..to stop the bleeding SBF personally guarantees Alameda’s $680 million loan via his Robinhood stake…
….through a shell company called Emergent…
…which legally operates at arm’s length from FTX…
…but is controlled by SBF…
and funded by FTX revenues!