Sam Bankman-Fried’s FTX crypto exchange has signed a take care of an choice to buy embattled crypto lender BlockFi for as much as $240 million, BlockFi Chief Executive Zac Prince said on Friday.
FTX has also agreed to supply BlockFi with a $400 million revolving credit facility, Prince said in a tweet. He added that BlockFi has faced a jump in withdrawals after news of crypto lending platform Celsius Network’s freeze.
Fears of a possible US recession attributable to aggressive rate hikes from the Federal Reserve have roiled dangerous assets this yr, including cryptocurrencies. That has sparked a meltdown in what was just last yr a booming industry.
Last month, BlockFi cut 20% of its headcount and implemented multiple cost-cutting measures reminiscent of reducing marketing spending and executive compensation.
Corporations use revolving credit facilities as backstop financing to combat opposed impacts on other sources of income. For probably the most part, these facilities remain undrawn.
Zac Prince’s BlockFi has faced a jump in withdrawals after news of crypto lending platform Celsius Network’s freeze.CNBC