Leading crypto exchange is reportedly taking a stake in beleaguered crypto lending firm BlockFi as the crypto industry faces collapse.
According to the Wall Street Journal, FTX is currently in talks with BlockFi about participating in the company.
The takeover talks came as BlockFi secured a $250 million credit facility from FTX, which the crypto industry largely recognized as a “bailout.”
“BlockFi does not comment on market rumors. We are still negotiating the terms of the deal and cannot share any further information at this time. We anticipate sharing more about the terms of the deal with the public at a later date,” a BlockFi spokesperson said. Cointelegraph.
BlockFi has entered into an agreement with FTX to secure a $250 million revolving credit facility with “access to capital that further bolsters our balance sheet and the strength of our platform,” said Zac Prince, CEO of BlockFi.
“Proceeds from the line of credit are intended to be contractually subordinated to all customer balances across all account types and will be used as needed,” he said in a tweet last week.
Throughout the market volatility of the last few weeks, “I am incredibly proud of the performance of our team, platform and risk management protocols,” he added.
This deal also unlocks future collaborations and innovations between BlockFi and FTX.
FTX CEO Bankman-Fried, who has remained silent on the BlockFi deal, criticized venture capitalists for their reluctance to provide funding for crypto startups during the economic downturn.
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