FTX began talks to buy stake in BlockFi

The cryptocurrency exchange had previously given a $250 million loan to the platform

25.06.2022 - 08:10

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2 min

What’s new? Cryptocurrency exchange FTX is in talks to buy a stake in blockchain platform BlockFi, The Wall Street Journal reports, citing sources. The parties have not yet reached an agreement and are still in discussions. In addition, FTX provided BlockFi with a $250 million loan on June 21. Representatives of the platform noted that they will not “comment on market rumors,” and while negotiations are ongoing, it is not appropriate to share any information with the public.

Information on the WSJ website

What other deals have been struck? FTX founder Sam Bankman-Fried has backed many projects in the past few weeks amid the volatility of the cryptocurrency market. Alameda Research, a company he manages, has announced two loans, $15 000 BTC and $200 million in fiat and stablecoins, to Voyager Digital to cover its losses. The need for the loan reportedly stemmed from a $666 million debt from cryptocurrency hedge fund Three Arrows Capital (3AC). Later, Alameda also bought a large stake in Voyager worth $35 million. In total, Bankman-Fried’s companies own 11,56% of Voyager shares.

Other investments by Bankman-Fried include the acquisition of a 7,6% stake in the online broker Robinhood for $648 million. In mid-June, FTX announced that it had bought the Canadian cryptocurrency exchange Bitvo.

Crypto startup BlockFi was founded in 2017. The platform provides lending and borrowing services, as well as an option to place deposits with interest accrual.

In February, the US Securities and Exchange Commission (SEC) and state regulators in Kentucky, New Jersey, and Texas fined BlockFi $100 million for failing to register its crypto lending product.

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