Blockfi Pauses Customers Withdrawals, Cites 'Lack of Clarity' on FTX's Status as Cause
- tahun lalu
FTX’s Deal
The company had secured a $250 million credit line with FTX in June, that would be used to bolster its balance sheet. On the destiny of these funds, Blockfi’s cofounder Zac Prince stated:
The proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed,
The agreement signed between the two companies gave FTX the option to acquire Blockfi at a price of up to $240 million. The company, which had also laid off 20% of its staff in June as a consequence of the cryptocurrency winter, had also suffered from exposure to the downfall of Three Arrows Capital, losing $80 million.
The company had secured a $250 million credit line with FTX in June, that would be used to bolster its balance sheet. On the destiny of these funds, Blockfi’s cofounder Zac Prince stated:
The proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed,
The agreement signed between the two companies gave FTX the option to acquire Blockfi at a price of up to $240 million. The company, which had also laid off 20% of its staff in June as a consequence of the cryptocurrency winter, had also suffered from exposure to the downfall of Three Arrows Capital, losing $80 million.