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Crypto lender BlockFi has had a highly tumultuous 12 months. After getting caught up in the Terra fiasco, which resulted in one of the most prolific asset death spirals<\/a> of all time, the company managed to avoid bankruptcy after receiving a $400 million lifeline<\/a> in July 2022. The problem? Its lender was FTX US, and we all know what happened next<\/a>.<\/p>\n Although BlockFi has attempted to separate itself from Sam Bankman-Fried\u2019s fraud in the aftermath of FTX\u2019s collapse, its secret financials tell a different story.<\/p>\n This week\u2019s Crypto Biz delves into BlockFi\u2019s uncensored financials, the likelihood of \u201cCelsius token\u201d ever seeing the light of day and the latest high-profile funding deal in blockchain. <\/p>\n Just how bad are BlockFi\u2019s financials<\/a>? For starters, the bankrupt crypto lending firm reportedly has $1.2 billion in assets tied up in Sam Bankman-Fried\u2019s failed companies \u2014 FTX and Alameda Research, to be specific. According to CNBC, BlockFi made these details public by accident, adding insult to injury. Nevertheless, the documents show that the company had $315.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda as of Jan. 14. Although BlockFi has attempted to separate itself from SBF\u2019s companies, it looks like it\u2019ll continue to circle the same drain as FTX and Alameda. <\/p>\n BlockFi is reportedly looking to sell $160 million in loans<\/a> backed by 68,000 Bitcoin (BTC<\/a>) miners as part of its bankruptcy proceedings. That sounds like a good strategy to raise liquid funds, right? Unfortunately, some of these loans have already defaulted and are likely undercollateralized following Bitcoin\u2019s year-long bear market<\/a>. A legal expert interviewed by Cointelegraph cautioned that the loans are probably \u201cnot worth their paper value anymore.\u201d Let\u2019s hope for BlockFi\u2019s sake that the value of the mining equipment used in the collateral isn\u2019t worth less than the value of the loans. <\/p>\n Months before FTX collapsed, crypto lender Celsius filed for bankruptcy<\/a> after its degen crypto portfolio failed to survive the bear market. Billions in customer deposits now hang in the balance as the company looks for an optimal reorganization strategy. This week, it was reported that Celsius was considering issuing its own token<\/a> to repay creditors. Of course, this means relaunching its platform. Apparently, Celsius wants to wrap this up in a new publicly-traded company that is \u201cproperly licensed.\u201d I\u2019m not sure Alex Mashinsky<\/a> will ever succeed in crypto again, but here\u2019s hoping Celsius creditors get something in return for trusting him in the first place. <\/p>\n BREAKING NEWS \u2014 CelsiusFactsNumbers (@CelsiusFacts) January 24, 2023<\/a><\/p><\/blockquote>\n If you\u2019re looking for a silver lining in crypto this week, take solace in the fact that companies are once again raising hundreds of millions<\/a> in venture capital (VC). Chief among them is Injective, the layer-1 blockchain protocol built on Cosmos SDK. This week, Injective announced a $150 million ecosystem fund<\/a> backed by Pantera Capital, Kraken Ventures, Jump Crypto, KuCoin Ventures, Delphi Labs and others. The fund will support developers building on the Cosmos network \u2014 specifically infrastructure solutions, trading platforms and proof-of-stake technology<\/a>. Will crypto VC rebound strongly in 2023? Only time will tell. <\/p>\n Bitcoin\u2019s price crawled back above $23,000 this week and appeared to have entered a higher range \u2014 raising cautious optimism that the bottom is in. But does anyone know why BTC and the broader crypto market are pumping? In this week\u2019s Market Report<\/em><\/a>, I sat down with fellow analysts Marcel Pechman and Joe Hall to discuss whether the current pump is sustainable. We also explored what could be in store for digital assets in the coming months. You can watch the full replay below:<\/p>\nBreaking: BlockFi uncensored financials reportedly shows $1.2B FTX exposure<\/h3>\n
BlockFi to sell $160M in Bitcoin miner-backed loans: Report<\/h3>\n
New \u2018Celsius token\u2019 may be used to repay creditors: Report<\/h3>\n
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– #CelsiusNetwork<\/a> is looking at having a stratefied recovery smaller holders bellow 5k might get all assets to leave.
– Larger holders will get a debt token that seems to represent all the value, so you can sell if you dont believe in the company or recovery.<\/p>\nInjective launches $150M ecosystem fund to boost DeFi, Cosmos adoption<\/h3>\n
Before you go: Why is crypto pumping?<\/h3>\n