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BlockFi gets $250 million credit facility from FTX to support platform

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Crypto lending platform BlockFi has signed an agreement with leading crypto exchange FTX to provide a $250 million revolving line of credit, BlockFi CEO Zach Prince announced on June 21.

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The agreement will give BlockFi access to additional capital, which the firm will use to bolster its balance sheet, Prince said.

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Income from the credit line will be contractually subject to all customer balances across all BlockFi accounts. These include BlockFi Interest Account (BIA), BlockFi Personalized Yield (BPI), and BlockFi Loan Collateral. BlockFi intends to use the proceeds to support its operations as the bear market continues to ravage the crypto space.

BlockFi Committed to Keeping User Funds Safe

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Prince noted that this deal highlights BlockFi’s commitment to serving its customers and keeping their funds safe.

Last week, Celsius Network suspended withdrawals, swaps and transfers on its platform due to liquidity issues. Cryptocurrency hedge fund Three Arrows Capital (3AC) is facing liquidation in a ripple effect after failing to meet margin calls from creditors. According to the Financial Times reportBlockFi was among the creditors who liquidated 3AC.

While BlockFi has not confirmed its role in the liquidation of 3AC, Prince said the company liquidated a major counterparty after failing to meet margin requirements. He did not disclose the name of the specified counterparty. However, Prince stated that BlockFi was one of the first lenders to liquidate the third party and that the quick action helped keep customer funds safe.





Credit : cryptoslate.com

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