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FTX provides BlockFi with a $250 million credit facility

21 Jun 2022 : 13:58
2 min read
  • Crypto lender BlockFi revealed that it has received a $250 million credit facility from crypto exchange FTX
  • The news three days after The New York Post reported that BlockFi failed to raise capital from investors
  • The agreement opens the door to future collaboration between BlockFi and FTX

Crypto lender BlockFi revealed that it has received a $250 million credit facility from crypto exchange FTX.

BlockFi receives $250M credit Facility

On Twitter, BlockFi CEO Zac Prince announced the news, explaining that the credit facility funding strengthens the company’s balance sheet. The announcement comes three days after The New York Post reported that BlockFi failed to raise capital while providing a steep discount on its valuation, raising concerns in the crypto industry.

According to Prince, the credit facility proceeds will be contractually subordinated to all client balances across all account types (BIA, BPY, and loan collateral) and used as needed. The agreement also opens the door to future collaboration between BlockFi and FTX.

Large client failed to meet its obligations

BlockFi also stated on Thursday that a significant client had failed to meet its obligations on a margin loan. The client’s name was not revealed, but the Financial Times reported that BockFi was among the entities who liquidated at least some of their positions with Three Arrows Capital.

The lending platform was already having a hard time as it recently slashed its workforce by 20%. BlockFi founders Zac Prince and Flori Marquez said in a blog post that “market conditions that have had a negative impact on our growth rate” drove their decision to make the job cuts.


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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