As the second week of Sam Bankman-Fried’s trial in Manhattan federal court concluded, critical statements from the founder and CEO of BlockFi Inc. have come to light. It’s been learned that BlockFi, a now-bankrupt crypto lender, based its financial decisions on balance sheets from Alameda Research ─ a hedge fund tied to FTX. These documents allegedly showed that Alameda Research had assets greater than $6 billion.
The statements from BlockFi’s chief shed new light on its relationship with FTX and Alameda Research, raising deep-seated questions about the transparency and integrity of information sharing within the high-stakes world of cryptocurrency investments and lending.
For more detailed coverage of the trial’s developments, including further testimony from other key players, consider reading Rachel Scharf’s reporting for Law360.