Crypto lender Blockfi detailed Tuesday that the company has secured a $250 million credit facility from the FTX.Blockfi CEO Zac Prince announced on Twitter that the company will use the capital to strengthen Blockfi’s “balance sheet and platform strength.”
Blockfi Acquires $250 Million Revolving Credit Line From FTX After Crypto Lending Firms Struggle With 2022’s Market Volatility
- It was a rough year for crypto lenders as digital assets lost significant value over the past few months. One lender, Celsius, was accused of being insolvent and suspended withdrawals last week.
- In 2021, U.S. securities regulators in various states sent cease-and-desist letters to Celsius and crypto lender Blockfi; in February 2022, the SEC charged Blockfi with failing to register retail crypto lending products.
- In the second week of June, Blockfi co-founders Zac Prince and Flori Marquez announced that they were laying off “approximately 20%” of their staff due to “market conditions” that had a “negative impact” on the company.
- On June 16, Princediscussed“speculation about Brockfi’s risk management practices,” and Brockfi’s CEO emphasized that the company has alwaysimplemented “prudent and proactive risk management.”
- Prince revealed Tuesday that Blockfi has secured a $250 million line of credit from FTX. Blockfi’s CEO said, “Today, Blockfi signed a letter of intent with FTX to secure a $250 million revolving line of credit, providing access to capital that will further strengthen our balance sheet and platform strength,”.
- “The proceeds of the line of credit are intended to be contractually subordinated to all client balances of all account types (BIA, BPY &loan collateral) and will be used as needed,” Princecontinuedin his Twitter thread.
What do you think about the current state of crypto lending companies, and what do you think about Blockfi securing $250 million from FTX? Let us know what you think about this subject in the comments section below.
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