• bitcoinBitcoin$24,480.001.51%
  • ethereumEthereum$1,987.263.23%
  • ElrondElrond$65.31-0.19%

BlockFi’s Partnership With Sam Bankman-Fried’s FTX Will Give Clients Priority

BlockFi and FTX US have entered binding agreements for a $400 million revolving credit facility, which will be subordinated to all customer funds. Based on performance goals, the cryptocurrency exchange also has the option to buy BlockFi for around $240 million.

BlockFi CEO and founder Zac Prince said on Saturday that client assets will be given priority as part of the agreement, adding to a previous term sheet for a $250 million revolving credit facility from the crypto exchange.

According to Prince, BlockFi has not used this credit facility yet and is still running all of its products and services properly.

However, he added, the crypto lender did post losses of roughly $80 million, a small portion of what other lenders have disclosed publicly.

According to Prince, “an uptick in client withdrawals” from BlockFi’s platform followed news that Celsius Network had suspended withdrawals and transfers.

It is unknown if only the investors in the senior-most tranche of the most recent financing by the company are compensated by FTX’s option to purchase BlockFi.

Prince declared: “I am extraordinarily disappointed that an inappropriately leaked call led to reporting on potential negative impacts to the BlockFi team. These comments were purely personal conjecture by a single party and were subsequently retracted.”

Previous articleNext article

Leave a Reply

Your email address will not be published.