Crypto lending platform BlockFi has secured a $250 million credit facility from FTX cryptocurrency exchange, CEO Zac Prince announced Tuesday.
<h2>FTX Rescues BlockFi</h2>
BlockFi CEO and co-founder Zac Prince announced in a Twitter thread that the agreement will offer the crypto lending platform access to additional capital, which the firm will use to strengthen its balance sheet.

https://twitter.com/BlockFi/status/1539226227021688833

The proceeds of the credit facility will contractually be subordinate to all client balances across all BlockFi accounts which includes BlockFi Interest Account (BIA), BlockFi Personalized Yield (BPI), and BlockFi loan collateral.

Additionally, the agreement also unlocks future collaboration and innovation between BlockFi and FTX in an effort to ‘accelerate prosperity worldwide through crypto financial services.’
<blockquote><em>“This is a significant step forward in our continued commitment to the strength and accessibility of cryptocurrency markets,”</em> Prince wrote in his Twitter thread.</blockquote>
https://twitter.com/BlockFiZac/status/1539216599512756224
<h2>FTX Backs Out Several Crypto Projects</h2>
This is not the first time FTX has stepped in to bail out a major crypto company impacted by the recent market downturn. Just this week, crypto broker Voyager Digital secured a revolving line of credit with the FTX-founded quant trading shop <a href="https://www.cryptoknowmics.com/news/tron-dao-reserve-appoints-alameda-research-as-the-first-member-and-whitelisted-institution/" target="_blank" rel="noopener">Alameda Research</a>.

FTX is also one of the firms that liquidated BlockFi's rival <a href="https://www.cryptoknowmics.com/news/celsius-seeks-more-time-to-stabilize-liquidity-after-withdrawal-freeze/" target="_blank" rel="noopener">Celsius</a>, the troubled crypto lending platform that was forced to halt all user withdrawals last week.

Two days earlier, FTX's CEO Sam Bankman-Fried (SBF) tweeted that the <a href="https://ftx.com/" target="_blank" rel="nofollow noopener">cryptocurrency exchange</a> has a "responsibility" to bail out struggling companies during this bear market.

https://twitter.com/SBF_FTX/status/1538518138685464577

Crypto Lender BlockFi Secures $250M Credit Facility from FTX

BlockFi has secured a $250 million credit facility from the FTX crypto exchange. The agreement will offer the platform access to additional capital.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Crypto Lender BlockFi Secures $250M Credit Facility from FTX

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