Cryptocurrency

FTX Extends a $250M USD Line of Credit In BlockFi Bailout

Just days after CEO Sam Bankman-Fried said FTX has a “responsibility” to bail out ailing crypto companies.

Cryptocurrency

FTX Extends a $250M USD Line of Credit In BlockFi Bailout

Just days after CEO Sam Bankman-Fried said FTX has a “responsibility” to bail out ailing crypto companies.

Cryptocurrency exchange FTX announced a partnership with crypto lending platform BlockFi in the form of a $250 million USD line of credit. This news comes just days after FTX CEO Sam Bankman-Fried said he believes the company has a “responsibility,” to bail out ailing crypto companies.

In addition to tweets from Bankman-Fried, BlockFi’s CEO Zac Prince also shared details surrounding the news and where the funds might be directed.

“The proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed,” said Prince, adding that “this agreement also unlocks future collaboration and innovation between BlockFi & FTX as we work to accelerate prosperity worldwide through crypto financial services.”

The CEO concluded with a message of reassurance addressed directly to BlockFi clients, stating that the company is there for them, the team is “battle-tested,” and the brand is more resilient than ever — he noted that future initiatives will be shared shortly.

As for FTX, its CEO has held a firm voice and position throughout the market downturn, reassuring users that the company holds no outstanding debt, and is in a strong financial position to continue hiring, acquisitions, bailouts, and partnerships.

Though BlockFi has had significant challenges over the last few months, Bankman-Fried shared a tweet of support saying that BlockFi is financially strong and that it will continue on operations as it always has.

Elsewhere in Crypto news, ProShares launches the first Bitcoin short ETF in the US.

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