At a time when no central bank seems willing to help cryptocurrency companies sinking into the vortex of the recent sell-off in the industry, some of them are looking for a “helping hand” to their rivals.
And billionaire Sam Bankman-Fried, head of the FTX cryptocurrency exchange and one of the richest people in the industry, is responding by offering a lifeline to two companies in just two weeks: BlockFi banking platform and stockbroking company Voyager Digital.
Bankman-Fried’s FTX announced on Tuesday that it had agreed to provide BlockFi with a $ 250 million recyclable credit line, which the billionaire said would help BlockFi “move from strength to strength”.
“We take seriously our duty to protect the digital asset ecosystem and its customers,” the billionaire FTX chief wrote on Twitter.
The news follows BlockFi ‘s announcement earlier in June that it would lay off 20% of its staff.
BlockFi was not immediately available for comment on CNBC.
Last week, meanwhile, Voyager Digital announced that Alameda Research, Bankman-Fried’s data analytics firm, would provide $ 500 million in funding.
The deal provides for a $ 200 million cash and stablecoins credit line, as well as a separate recycling facilitated 15,000 bitcoin credit line worth about $ 300 million at current prices.
The “dip” of digital currencies in recent weeks has resulted in many companies in the cryptocurrency industry now facing financial problems.
Bankman-Fried is one of the richest people in the cryptocurrency industry, with an estimated net worth of $ 20.5 billion, according to Forbes. The cryptocurrency exchange it founded, FTX, was valued at $ 32 billion in early 2022.