Blockfi signs a loan contract of $ 250 million with FTX to dispel liquidity fears

Blockfi signs a loan contract of $ 250 million with FTX to dispel liquidity fears

The FTX crypto tour remains busy in the middle of the downturn at the cryptomarkt and announced on Tuesday that it agreed to support Blockfi with a revolving credit line of $ 250 million.

said FTX-CEO Sam Bankman-Fried in a rel = "Nofollow Noopener" Target = "_ Blank" htf = "https://twitter.com/sbf_ftx/15392687916385"> Tuesday-Tweet takes his customers seriously.

The partnership with Blockfi follows Alameda Research, a trading company founded by Bankman-Fried, which gives the crypto broker Voyager Digital Digital $ 500 million. The capital gives the company more flexibility to alleviate the current market conditions, said Stephen Ehrlich, CEO von Voyager, in an explanation.

ftx also agreed to take over the Canadian crypto trade company Bitvo last week. Bankman-Fried said Blockworks in April that difficult market conditions could trigger a wave of mergers and takeovers and that it would be "not completely shocking" for the company to acquire some shrinking stock exchanges.

The proceeds from the credit facility should be contractually subordinate to the customer credit for all blockfi account types and use to strengthen the balance of Blockfi.

ZAC Prince, CEO of Blockfi, said in a explanation that the deal will help to be protected, and found that it also releases future cooperation and innovation between the company and FTX.

A blockfi spokesman did not immediately answer the request from block works for comment.

The capital injection comes while the industry deals with the latest price losses in cryptocurrencies.

Prince announced on Twitter last week that the company would reduce the staff by around 20 % and found that "the dramatic change in the macroeconomic conditions" affected the growth rate of Blockfi.

The crypto loan also confirmed on Thursday that he has liquidated a nameless “major customer” who did not meet his obligations from an overly secure margin loan. The Financial Times reported that the crypto hedge fund Three Arrows Capital (3AC) was the affected counterparty.

"Blockfi has careful risk management and excellent leadership. "The assets of blockfi customers are appropriately managed without debt/risks of 3AC, Celsius, etc."

The CEO added in the Twitter thread that FTX would work with Blockfi to offer "industry-leading products" in the future.

An FTX spokesman refused to continue to make a partnership with Blockfi, or to comment on future cooperation with the company.

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The Blockfi contribution concludes a loan contract of $ 250 million with FTX to alleviate the fear of liquidity. He is not a financial advice.