06-22-2022 icon

BlockFi Obtains $250 Million Loan From FTX Amid Bear Market

By Lucy Adegbe

Amid the harshness of the market, leading to intense struggle amongst crypto platforms, BlockFi aims to conserve users’  balance with the loan. 

Crypto trading firm BlockFi published a tweet through its CEO Zac Prince, revealing its newly acquired “revolving” loan facility of $250 million from FTX.

The news which was later announced by the press analyzed that the company had grabbed that option to “bolster” its “balance sheet and platform strength.”

BlockFi is bound by the signed sheet to freely access the agreed amount of funds for its business endeavors, repay and withdraw again when necessary.

BlockFi CEO mentioned that “the proceeds of the credit facility are intended to be contractually subordinated to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed.”

Prince had tweeted in the past week, that the company’s compelling move to pay off a major client due to failure “to meet its obligations on an over collateralized low.”  Although he didn’t specifically mention a name, there have been inferences about the financial competence of the leading crypto expenditure platform Three Arrows Capital.

Aside from BlockFi, FTX has reportedly stepped in time and again to revive major platforms during the harsh market conditions, although there have been reports claiming they caused Celsius liquidation. 

Celsius, a major contender to BlockFi was recounted to have run on a deficit as a result of sequential formidable decentralized economic bets which made it unable to settle depositors.