According to a report on Tuesday, ongoing talks followed BlockFi signing a term sheet with FTX to secure a $250 million revolving credit facility.
The report says Crypto exchange FTX is in talks to acquire a stake in BlockFi after the company issued a $250 million credit to the lending firm.
Wall Street Journal, declared in a Friday report that FTX is currently in discussions with BlockFi regarding the crypto exchange purchasing a stake in the firm, but no equity agreement has been reached. The ongoing talks followed BlockFi signing a term sheet with FTX to protect a $250 million revolving credit facility on Tuesday.
Though a BlockFi spokesperson told Cointelegraph,”BlockFi does not comment on market rumors. 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”.
While the bear market is forcing to reduce staff, FTX founder and CEO Sam Bankman-Fried, or SBF, has helped support many crypto projects in recent weeks. Trading firm Alameda Research, under SBF’s management, declared it had loaned 15,000 Bitcoin (BTC) to Voyager Digital on Wednesday intended at covering losses from its exposure to Three Arrows Capital.
On Sunday Cointelegraph reported that SBF told 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.”
Though it’s still unclear if FTX’s reported want to purchase a stake in BlockFi was related to financial difficulties at the crypto lending firm amid a bear market. However, BlockFi is ordered to pay $50 million in settlement to the agency as well as $50 million to 32 state-level regulators over allegedly unregistered securities by the United States Securities and Exchange Commission in February.
No response is received yet from BlockFi till the time of publication.
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