FTX in Talks to Acquire Part of BlockFi: Report
FTX previously extended a $250 million emergency line of credit to the struggling crypto lender earlier this week.
Jun 24, 2022 at 3:30 p.m. UTCUpdated May 11, 2023 at 6:47 p.m. UTC
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FTX is in talks to acquire a stake in beleaguered crypto lender BlockFi, The Wall Street Journal reported Friday.
- The potential tie-up would quickly deepen the financial relationship established when crypto exchange FTX extended a $250 million emergency line of credit to BlockFi earlier this week.
- According to the WSJ, the talks are ongoing and no final terms have been reached.
- "BlockFi does not comment on market rumors," a BlockFi spokesperson told CoinDesk when asked about the report. "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."
- Sam Bankman-Fried’s trading empire has emerged as a backstop for the crypto industry amid fears of contagion in the falling markets. Last week, Alameda Research, the quant trading shop controlled by Bankman-Fried, gave a revolving line of credit to troubled crypto broker Voyager Digital (VOYG) for $200 million in cash/USDC and 15,000 bitcoin.
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UPDATE (June 24, 15:46 UTC): Added comment from BlockFi and additional information on the loan to Voyager Digital.
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Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.