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BlockFi Loans $250 Million From FTX

Lending platform BlockFi has announced a $250 million line of credit after FTX boss Sam Bankman-Fried announced it would support struggling companies.

On June 21, BlockFi Lending announced that it had been loaned $250 million by FTX, the world’s leading crypto derivatives exchange. This amount will be used to ensure liquidity for users who are depositing funds into the project, as confirmed by CEO Zac Prince.

This is BlockFi’s latest move after being involved in rumors of being affected by the default scandal of two giants in the cryptocurrency industry, Celsius and Three Arrows Capital.

On June 17, Mr. Zac Prince hinted at the liquidation of Three Arrows Capital’s assets, and affirmed that users’ assets are still safe, but did not explain why he had to loan FTX like this. BlockFi last week also announced a 20% reduction in its 850-person staff because of the market situation.

BlockFi is the second cryptocurrency to admit to being bailed out by organizations related to billionaire Sam Bankman-Fried. At the end of last week, crypto investment app Voyager Digital announced it had borrowed $485 million in cryptocurrency (value at the time of the loan) from Alameda Research, an investment fund closely linked to FTX.

In a recent interview, Mr. Sam Bankman-Fried also admitted that he couldn’t stand by and had to help a number of organizations to avoid the knock-on effect.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.