Crypto lender BlockFi has secured a $250 million revolving line of credit from crypto exchange ftxCEO Jack Prince made the announcement Tuesday morning on Twitter.
“Today @BlockFi signed a term sheet with @FTX_Official giving us access to capital to provide a $250M revolving credit facility that further enhances the strength of our balance sheet and platform,” he said in a statement. written in twitter thread,
Prince said proceeds from the FTX loan are contractually subordinated to all client balances, meaning that BlockFi will meet its obligations on client accounts—BlockFi interest accounts, BlockFi personal yields, and loan collateral—before FTX is paid off .
today @blockfi signed a term sheet with @FTX_Official To secure a $250M revolving credit facility that gives us access to capital that further strengthens our balance sheet and platform strength.
The company has been hit especially hard in the recession. Last week BlockFi joined a growing list of firms that have reduced their workforce during the cryptocurrency winter season, sacking their employees “about 20%,
At the time, Prince said on Twitter that all BlockFi products and services would continue to operate as normal.
This is an occasional disclaimer.
Celsius, one of BlockFi’s cryptocurrency lending competitors, halted account withdrawals, swaps and transfers last Sunday to help weather the day.extreme market conditions“Yesterday, the company said: needs more time to settle down before closing the accounts.
Meanwhile, BlockFi has faced its own adversity. Last week, the company $1 million paid to Iowa insurance division as a large part $100 million fine That BlockFi agreed to pay to settle its high-yield accounts checks.
In his announcement of Credits, Prince indicated that this could open the door to a partnership between FTX and BlockFi.
“This agreement also opens up future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity around the world through crypto financial services,” he said on Twitter.
The feeling seems to be mutual. Yesterday, FTX CEO Sam Bankman-Fried said that crypto exchanges have a “responsibility” to bail out companies struggling during this incredible bear market.
“Even though we were not the cause of, or were not involved in,” he said, referring to the wave of “infections” affecting crypto markets. “I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”
Want to become a crypto expert? Get the best of Decrypt straight to your inbox.
Receive the biggest crypto news + weekly roundups and more!