“In addition to the loan arrangement, and the $275 million that was drawn, BlockFi acted as a lender to Alameda, which is an FTX trading subsidiary, and they also had crypto on the FTX platform,” Sussberg said in court. “Specifically, BlockFi had $671 million in outstanding loans that are defaulted to Alameda and $355 million in digital assets that, unfortunately, are now frozen on the FTX platform.”

BlockFi filed for bankruptcy protection this week, becoming the latest firm to face financial turmoil after the collapse of one of the world’s largest crypto exchanges. 

FTX had given BlockFi a $275 million loan earlier this year, and was listed as BlockFi’s second-largest creditor in bankruptcy filings.