BlockFi CEO Denies FTX Is Set to Purchase Crypto Lender for Solely $25M

 BlockFi CEO Denies FTX Is Set to Purchase Crypto Lender for Solely $25M

Acquisition talks between BlockFi and FTX could also be nearing an finish.

Unnamed sources informed CNBC on Thursday that CEO Sam Bankman-Fried’s FTX cryptocurrency alternate may pay about $25 million to amass the struggling crypto lender.

Though his firm declined to remark to Decrypt, BlockFi CEO Zac Prince took to Twitter to discredit the information.

“A lot of market rumors on the market,” Prince wrote in a tweet shortly after the CNBC story went stay. “I can 100% affirm that we aren’t being bought for $25M.”

If a deal did come near that, FTX could be paying pennies on the greenback for the embattled cryptocurrency lending firm. BlockFi, which is predicated in New Jersey, had a valuation of $3 billion when it raised its $350 million Collection D spherical final March.

Since then, the corporate has reached a $100 million settlement with state regulators and the U.S. Securities and Trade Fee over its BlockFi Curiosity Accounts and is rumored to now be holding a big portion of poisonous debt as a part of the fallout from hedge fund Three Arrows Capital’s liquidation.

An FTX spokesperson informed Decrypt in an electronic mail that it “wouldn’t be commenting on the matter.” In the meantime, a spokesperson for BlockFi mentioned the corporate “doesn’t touch upon market rumors.”

Prior to now week, BlockFi and FTX introduced that the lender had secured a $250 million revolving line of credit score from the alternate.

“This settlement additionally unlocks future collaboration and innovation between BlockFi & FTX as we work to speed up prosperity worldwide by crypto monetary companies,” BlockFi CEO Zac Prince tweeted on the time.

If FTX does wind up buying BlockFi, it received’t be the primary time that it began time period sheet negotiations by providing a bailout. The alternate did one thing comparable with Japanese fintech firm Liquid Group, and in the end closed the deal to purchase the corporate for an undisclosed quantity in April.

FTX provided the corporate a $120 million mortgage after it had $90 million stolen in a hack after which introduced that it was in talks to amass the corporate in February this 12 months. 

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