The CEO of cryptocurrency lending service BlockFi announced on Twitter on Tuesday, June 21, that he had received a loan from the FTX cryptocurrency exchange.
“Today, BlockFi signed an agreement with FTX to provide a $250 million revolving credit facility providing access to capital that will further strengthen our balance sheet and platform sustainability,” wrote Zac Prince.
The BlockFi CEO added that the money allocated by FTX under the loan, according to the agreement, will be placed on the balance of customers.
The decision to open a line of credit follows a statement by FTX CEO Sam Bankman-Fried, who believes his platform is “responsible for saving” other companies during a bearish trend. The crypto lending service is now going through hard times and needs financial support.
BlockFi has been particularly hard hit during the economic downturn. Last week, she joined a growing list of companies cutting staff. At the same time, the service assured that all BlockFi products and services will be available to customers as usual.
Last week, the regulator of the US state of Iowa (IID), following an investigation by the US Securities and Exchange Commission (SEC) and other regulators, demanded that BlockFi pay an administrative fine of about $1 million. In addition, the company must pay compensation to the SEC in the amount of up to $50 million and another $50 million to US states that have made similar allegations.
Source: Bits
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