Crypto Lender Blockfi Secures $250 Million Line of Credit From FTX, CEO Says Capital Will Bolster Its Balance Sheet

The crypto blockfi lender detailed Tuesday that the company has secured a line of credit of $250 million ftx. Blockfi CEO Zac Prince announced on Twitter that the company will use the capital to strengthen the "balance sheet and strength of the Blockfi platform."

Blockfi gets a $250 million revolving line of credit from FTX after crypto lending firms struggle with 2022 market volatility.

• It has been a difficult year for crypto lenders due to the loss of digital assets of significant value over the past few months. One lender, Celsius, has been accused of being insolvent and last week it paused withdrawals.
• In 2021, American securities regulators in various states issued prohibition orders to Celsius and crypto lender Blockfi. In February 2022, the U.S. Securities and Exchange Commission (SEC) Blockfi did not register its retail crypto lending products.
• During the second week of June, Blockfi co-founders Zac Prince and Flori Marquez announced the company would lay off “roughly 20%” of its staff due to “market conditions” that had a “negative impact” on the company.
• On June 16, Prince discussed “speculation about BlockFi’s risk management practices,” and the Blockfi CEO that the company always enforces “prudent and proactive risk management.”
• Prince revealed Tuesday that Blockfi got a US$250 million line of credit from FTX. “Today Blockfi signed a term sheet with FTX to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength,” the Blockfi CEO .
• “The proceeds of the credit facility are assumed to be contractually subordinated to all customer balances for all account types (BIA, BPY.

• The blockfi chief added that during the crypto market volatility, he was proud of the business risk management protocols and he added that the deal with ftx "unlocks future [collaborations]" with the crypto company.
• Meanwhile, since Celsius paused withdrawals, the crypto lending company updated the community in a newly published blog post. We want our community to know that our goal continues to stabilize our cashflow and business. This process will take time", details of Celsius blog post.

How do you feel about the current state of crypto loan companies? What do you think of blockfi securing $250 million ftx? Let us know how you feel about this topic in the comments section below.

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