FTX may have plans to invest in BlockFi: Report | Cryprtocurrency
25-06-2022
By: Somesh Gaur
FTX may have plans to invest in BlockFi: Report
After extending a $250 million credit to the lending company, cryptocurrency exchange FTX is allegedly in discussions to buy a share in BlockFi.
An American media outlet reported on Friday that although no equity deal has been struck, FTX is currently in talks with BlockFi about the cryptocurrency exchange buying a share in the company. The alleged continuing discussions started just after BlockFi and FTX signed a term sheet on Tuesday to establish a $250 million revolving credit facility.
Sam Bankman-Fried, the creator and CEO of FTX, often known as SBF, has supported several cryptocurrency initiatives in recent weeks as a bear market has forced many businesses to cut workers. In order to offset losses from its exposure to Three Arrows Capital, trading company Alameda Research, managed by SBF, said on Wednesday that it had borrowed 15,000 Bitcoin (BTC) to Voyager Digital.
As CoinGabbar previously reported, SBF claimed that Alameda and FTX should seriously consider intervening to stop the spread of the market collapse, even if doing so would be at our own expense.
It's unclear if financial issues in the cryptocurrency lending business during a bear market were connected to FTX's rumored intention to buy a share in BlockFi.
However, the US SEC ordered BlockFi to pay $50 million to the organization as well as $50 million to 32 state-level regulators as part of a settlement in February for purportedly unregistered securities.
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