Crypto Lending Platform BlockFi Gets $250 Million Bailout Fund from FTX

BlockFi, an embattled crypto lending platform that recently announced a 20% cut of its workforce, has received a $250 million revolving credit facility from FTX.

BlockFi, an embattled crypto lending platform that recently announced a 20% cut to its workforce, has received a $250 million revolving credit facility from FTX.

FTX Provides $250 Million Bailout for BlockFi

On Tuesday, June 21st, Zac Prince, the CEO of BlockFi, one of the crypto firms to be impacted heavily by the recent market downturn, announced that the company had received a $250 million bailout fund.

According to Zac Prince, the credit facility would give the lending platform access to capital that would help to “further bolster our balance sheet and platform strength”.

Sponsored

With the agreement, BlockFi will be able to access capital during a rout in the digital currency market. Although BlockFi has not disclosed terms of the agreement, or the rate of interest, it was clarified that the facility would be subordinate to all client balances in the event that BlockFi were to fail.

FTX Boss Praises the Move from BlockFi

Sam Bankman-Fried praised the move by the crypto lender, writing on Twitter that โ€œsometimes leadership means acting decisively, and thatโ€™s what BlockFi did.โ€

This is not the first time FTX has dealt out a bailout, having recently provided a $485 million cash and Bitcoin bailout to crypto broker Voyager Digital.

On the Flipside

  • BlockFi recently liquidated Three Arrows Capital after the crypto hedge fund failed to meet fund demands to cover its digital currency bets.

Why You Should Care

The rescue by FTX is part of an attempt to restore investor confidence during the period of intense sell-off and market crash.

Get more information about BlockFiโ€™s lay-offs below:

BlockFi Lays Off 20% of Its Staff Amidst Cryptocurrency Market Downturn

Learn more about BlockFiโ€™s liquidation:

BlockFi liquidates Three Arrows Capital

Read about BlockFiโ€™s financial issues in:

BlockFi to Pay $100 Million to the SEC for Offering Unregistered Securities

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia

Read more