Crypto change FTX is reportedly in talks to purchase a stake in BlockFi after the corporate issued a $250 million credit score to the lending agency.
According to a Friday report from the Wall Street Journal, FTX is at the moment in discussions with BlockFi concerning the crypto change buying a stake in the agency, however no fairness settlement has been reached. The reported ongoing talks adopted BlockFi signing a time period sheet with FTX to safe a $250 million revolving credit score facility on Tuesday.
“BlockFi does not comment on market rumors,” a BlockFi spokesperson advised Cointelegraph. “We are still negotiating the terms of the deal and cannot share more information at this time. We anticipate sharing more on the terms of the deal with the public at a later date.
FTX founder and CEO Sam Bankman-Fried, or SBF, has helped support many crypto projects in recent weeks amid a bear market forcing a lot of companies to reduce staff. Trading firm Alameda Research, under SBF’s management, announced it had loaned 15,000 Bitcoin (BTC) to Voyager Digital on Wednesday aimed at covering losses from its exposure to Three Arrows Capital.
Cointelegraph reported on Sunday that SBF said he believes Alameda and FTX “have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion” around the market downturn:
“Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”
VCs: “we would love to aid you backstop crypto corporations and supply liquidity as a result of we care deeply about stopping market contagion”
also VCs: “can we please do it for the one nice firm (after you repair it) and make a lot of cash doing it, you’ll be able to take the others ok thx bye”
— SBF (@SBF_FTX) June 23, 2022
Related: FTX won’t freeze hiring amid layoffs at different crypto corporations, CEO states
It’s unclear if FTX’s reported intent to purchase a stake in BlockFi was associated to monetary difficulties on the crypto lending agency amid a bear market. However, in February the United States Securities and Exchange Commission ordered BlockFi to pay $50 million in settlement to the company in addition to $50 million to 32 state-level regulators over allegedly unregistered securities.
Cointelegraph reached out to BlockFi, however didn’t obtain a response on the time of publication.