FTX to Provide $250M Revolving Loan to BlockFi

FTX to Provide $250M Revolving Loan to BlockFi

FTX will provide BlockFi $250 million revolving loan

BlockFi signed a letter of intent with cryptocurrency exchange FTX for a $250 million revolving loan 

https://twitter .com/BlockFiZac/status/1539216594383028224?ref_src=twsrc%5Etfw

According to cryptolending platform CEO Zach Prince, access to capital will “further strengthen the balance and reliability of the platform.”

BlockFi will deploy resources to support all types of products as needed.

Prince noted that the news confirms the platform's commitment to customer service and the safety of their funds.

BlockFi CEO added that the agreement opens up opportunities for collaboration between companies. He promised to share more details about future plans in the near future.

FatMan, an analyst, called the deal a “deal with the devil.”

The user under the nickname Raja saw in the agreement the intrigues of the head of FTX Sam Bankman-Fried, who “puts everyone in such a position, and then“ rescues ” '.

Recall that in June, the media reported that BlockFi was preparing to close a new round of funding when assessed in $1 billion instead of the previously planned $5 billion.

After that, the company announced the dismissal of a fifth of the staff.

According to media reports, in the context of recent market turbulence, the cryptolending platform liquidated at least part of the hedge positions -Fund Three Arrows Capital.

Earlier, the head of FTX and Alameda Research, Sam Bankman-Fried, said that he was making efforts to mitigate the negative phenomena in the cryptocurrency market due to the problems of Celsius and Three Arrows Capital. 

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On June 18, cryptocurrency broker Voyager Digital announced that Alameda Research has provided it with a 200M USDC loan and a 15,000 BTC (~$300M) revolving line of credit.

Formerly CEO Sam Bankman-Fried promised to spend “billions” to buy stakes in other companies.

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