FTX in deal to rescue crypto firm BlockFi with option to buy it

1 month ago 17

Sam Bankman-Fried’s FTX crypto speech has signed a woody with an enactment to bargain embattled crypto lender BlockFi for up to $240 million, BlockFi Chief Executive Zac Prince said connected Friday.

FTX has besides agreed to provide BlockFi with a $400 cardinal revolving recognition facility, Prince said successful a tweet. He added that BlockFi has faced a leap successful withdrawals aft quality of crypto lending level Celsius Network’s freeze.

Fears of a imaginable US recession owed to aggressive complaint hikes from the Federal Reserve person roiled risky assets this year, including cryptocurrencies. That has sparked a meltdown successful what was conscionable past twelvemonth a booming industry

Last month, BlockFi cut 20% of its headcount and implemented aggregate cost-cutting measures specified arsenic reducing selling spending and enforcement compensation.

Companies usage revolving recognition facilities arsenic backstop financing to combat adverse impacts connected different sources of income. For the astir part, these facilities stay undrawn.

Zac PrinceZac Prince’s BlockFi has faced a leap successful withdrawals aft quality of crypto lending level Celsius Network’s freeze.CNBC