TechFlow reports, according to Bloomberg, that the BlockFi unsecured creditors committee said in a newly unsealed report that BlockFi management repeatedly dismissed warnings from its risk management team against issuing large loans to SBF's Alameda Research secured by FTT.
The report attributes BlockFi's collapse to mistakes made by CEO Zac Prince and other executives. The creditors' findings were released on Friday, just days after BlockFi published its own investigation claiming Prince and other executives had little reason to worry about lending to Alameda prior to Alameda's collapse due to fraud allegations.
The creditors committee noted that as early as August 2021, a copy of Alameda Research’s balance sheet revealed the firm's heavy reliance on FTT, raising red flags within BlockFi, but Prince dismissed these concerns. The report cites an email from Prince stating that Alameda represented "the biggest/clearest growth opportunity we have."
