BlockFi Secures USD 250M Credit Facility from Bankman-Fried's FTX

cryptonews.com:

Major crypto lender BlockFi said it secured a USD 250m loan from the FTX exchange in an attempt to bolster its balance sheet.

The revolving credit facility, which is a type of credit, "are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed," Zac Prince, CEO of BlockFi, said.

"Today’s landmark announcement reinforces BlockFi’s commitment to serving its clients and ensuring their funds are safeguarded," he added.

According to the CEO, this agreement also "unlocks future collaboration" between BlockFi and FTX.

Last week, Prince confirmed that his firm has "a large client that failed to meet its obligations" on an "overcollateralized" loan.Meanwhile, Sam Bankman-Fried, CEO of FTX, said recently that large crypto companies such as his have a responsibility to step in and make efforts to contain the resulting losses for crypto investors.____Learn more: - Crypto Exchanges Backing Away from Sports Spending as Crunch Continues- BlockFi, Crypto.com, and Others Come Forward as Three Arrows Hires Advisers, Babel Finance Pauses Withdrawals- Babel Finance to Repay ‘Some Debts’ and ‘Ease Its Short-term Liquidity Pressure’- Bancor Pauses Protection Mechanism Due to ‘Hostile Market Conditions’- BlockFi Valued at USD 3B Following USD 350M Round- Bitcoin, Ethereum & Crypto Analysts Search for Bottom as Investors in 'Historically Meaningful Degree' of Pain- Next 6-12 Months to be ‘Brutal’, but Ivestment ‘Planting Season’ Starts Now, Arthur Hayes Says