The BlockFi lending platform is the subsequent identify to be “rescued” by an organization linked to Sam Bankman-Fried, the FTX exchange.
On the evening of June 21, the BlockFi Lending Unit announced that it had been lent $ 250 million by FTX, the world’s major crypto derivatives exchange. This quantity will be utilized to ensure liquidity to customers who are depositing money into the task, as confirmed by BlockFi CEO Zac Prince.
Today @BloccoFi signed a phrase sheet with @FTX_Official to safe a $ 250 million revolving credit score facility that gives us with entry to capital that even further strengthens our stability sheet and the power of our platform.
– Zac Prince (@BlockFiZac) June 21, 2022
This is BlockFi’s most recent move immediately after finding embroiled in rumors of currently being hit by the “default” scandal of two cryptocurrency giants, Celsius and Three Arrows Capital. On June 17, Mr. Zac Prince “hid” about the liquidation of Three Arrows Capital’s assets, and claimed that users’ assets have been nevertheless risk-free, but did not make clear why the choice was created. scorching loan “FTX like that.
BlockFi final week also announced a twenty% reduction in its workers of 850 due to the market place predicament. The business raised $ 250 million in March 2021 with a valuation of up to $ three billion, but lowered its valuation to just $ one billion all through the June fundraising system.
Thus, BlockFi is the 2nd admitted cryptocurrency unit to be bailed out by organizations linked to billionaire Sam Bankman-Fried. Late final week, cryptocurrency investment app Voyager Digital announced it had borrowed $ 485 million in cryptocurrency (worth at time of loan) from Alameda Research, an investment fund closely connected to FTX.
In a current interview, Sam Bankman-Fried also admitted that he “couldn’t stand by” but had to assistance a variety of organizations to steer clear of a knock-on impact.
Other significant gamers stated to have been hit by the Celsius crisis: Three Arrows Capital also contains Finblox, Babel Finance, Hoo and DeFiance Capital.
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