> BlockFi has said it had “significant exposure” to FTX and its sister company Alameda Research LLC, including taking a $400 million credit line from FTX U.S. that also gave FTX an option to buy the company.
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> BlockFi was one of several struggling crypto firms that signed deals to be rescued by FTX in the past months. The agreement is now in jeopardy as FTX itself sorts through its financial trouble and is subject to federal and state investigations.
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> It also holds assets at FTX.com and made loans to crypto trading firm Alameda partly secured by FTX’s FTT tokens.
So FTX lent money to BlockFi, and BlockFi lent money to Alameda, and Alameda owed money back to FTX? And BlockFi's money was stored on FTX and denominated in a "currency" that relied on FTX's performance for value?
This all lends credence to the theory that we instinctively knew was true: SBF was just doling out money to crypto firms in the spring to prop up the system a little longer, but ultimately it all relied on users injecting new money into the system.
https://www.wsj.com/articles/blockfi-files-for-bankruptcy-as...
So FTX lent money to BlockFi, and BlockFi lent money to Alameda, and Alameda owed money back to FTX? And BlockFi's money was stored on FTX and denominated in a "currency" that relied on FTX's performance for value?
This all lends credence to the theory that we instinctively knew was true: SBF was just doling out money to crypto firms in the spring to prop up the system a little longer, but ultimately it all relied on users injecting new money into the system.