Will FTX US buy BlockFi?

BlockFi and FTX US have reached a deal that will provide the embattled crypto company with a $400 million credit facility. The deal also gives FTX US, a unit of Sam Bankman-Fried's FTX crypto exchange, the right to acquire BlockFi and will, according to BlockFi CEO Zac Prince, "protect client funds."

How much is BlockFi worth?

BlockFi is a digital asset lender founded by Zac Prince and Flori Marquez in 2017. It is based in Jersey City, New Jersey. It was once valued at $3 billion. In July 2022, it was announced that the cryptocurrency exchange FTX made a deal with an option to buy BlockFi for up to $240 million.

Why did BlockFi go out of business?

BlockFi had blamed its predicament then on "crypto market volatility" and a broader market downturn. It was further hurt when another crypto lending platform, Celsius, filed for bankruptcy in June. While BlockFi said it didn't have any direct exposure to the competitor, it still saw an uptick in customer withdrawals.

What is Sam Bankman-fried's FTX deal with BlockFi?

Sam Bankman-Fried’s cryptocurrency exchange FTX has inked a deal with troubled crypto lender BlockFi with the option to acquire for up to $240 million. The “definitive agreement” provides BlockFi with a $400 million revolving credit facility, with the total value of deal estimated to reach up to $680 million – subject to shareholder approval.