FTX plans to buy blockfi stake The Ecoinomic

FTX plans to buy blockfi stake

Cryptocurrency exchange FTX is in talks to buy back a stake in BlockFi after granting a $250 million credit to the lender.

However, no share agreement has been signed. Ongoing negotiations are reported after BlockFi signed a terms table with FTX to secure a $250 million turnaround credit on June 21.

"BlockFi does not comment on market rumors. We are still negotiating the terms of the agreement and are unable to share further information at this time. We are expected to share more about the terms of the agreement with the public at a later date." A BlockFi spokesman said.

FTX supports projects

FTX founder and CEO Sam Bankman-Fried, or SBF, has supported many cryptocurrency projects in recent weeks amid a Bear market that has forced many companies to cut staff. Trading company Alameda Research, under the management of SBF, announced that it had loaned Voyager Digital 15,000 Bitcoins (BTC) on June 22 to offset losses related to Three Arrows Capital.

The SBF believes that Alameda and FTX "have a responsibility to seriously consider stepping in to help projects, even if they themselves are damaged, to prevent the spread" in the face of market downturns:

"Even if we're not the ones who caused it or don't have anything to do with it. I think that's a good thing for the ecosystem and I want to do what I can to help the ecosystem grow and grow."

VCs: "we'd love to help you backstop crypto firms and provide liquidity because we care deeply about preventing market contagion"

also VCs: "can we please do it for the one great company (after you fix it) and make a lot of money doing it, you can take the others k thx bye"

— SBF (@SBF_FTX) June 23, 2022

To date, there is no definitive information on whether FTX's purchase of a stake in BlockFi is related to the financial difficulties blockFi is facing in the context of the bear market. However, in February, the U.S. Securities and Exchange Commission ordered BlockFi to pay $50 million to the agency as well as $50 million to 32 state-level regulators for allegedly unregistered securities.