BlockFi Secures USD 250M Credit Line from Bankman-Fried’s FTX

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Linas Kmieliauskas

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Linas Kmieliauskas

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June 26, 2023 06:54 EDT

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Major crypto lender BlockFi said it secured a USD 250m loan from the FTX exchange in an attempt to bolster its balance sheet.

The revolving credit facility, which is a type of credit, “are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed,” Zac Prince, CEO of BlockFi, said.

“Today’s landmark announcement reinforces BlockFi’s commitment to serving its clients and ensuring their funds are safeguarded,” he added.

According to the CEO, this agreement also “unlocks future collaboration” between BlockFi and FTX.

Last week, Prince confirmed that his firm has “a large client that failed to meet its obligations” on an “overcollateralized” loan.

Meanwhile, Sam Bankman-Fried, CEO of FTX, said recently that large crypto companies such as his have a responsibility to step in and make efforts to contain the resulting losses for crypto investors.
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