Today's Date:December 1, 2022
BlockFi CEO Denies FTX Is Set to Acquire Crypto Lender for Only $25M

BlockFi CEO Denies FTX Is Set to Acquire Crypto Lender for Only $25M

If an arrangement goes through, it won’t be when FTX first began obtaining a credit extension.

Acquisition talks between BlockFi and FTX may be nearing an end.

Anonymous sources told CNBC on Thursday that CEO Sam Bankman-Fried’s FTX digital money trade could pay about $25 million to obtain the battling crypto loan specialist.

Despite the fact that his organization declined to remark, BlockFi CEO Zac Prince took to Twitter to ruin the news.

“Heaps of market bits of gossip out there,” Prince wrote in a tweet not long after the CNBC story went live. “I can 100 percent affirm that we aren’t being sold for $25M.”

If a deal did come close to that, FTX would be paying pennies on the dollar for the embattled cryptocurrency lending company. BlockFi, which is based in New Jersey, had a valuation of $3 billion when it raised its $350 million Series D round last March.

From that point forward, the organization has reached a $100 million settlement with state controllers and the U.S. Protections and Exchange Commission over its BlockFi Interest Accounts and is supposed to now hold a huge piece of poisonous obligation as a component of the aftermath of multifaceted investments Three Arrows Capital’s liquidation.

BlockFi CEO Denies FTX Is Set to Acquire Crypto Lender for Only $25M
Via Coin Market Cap.

A FTX representative let in an email know that it “wouldn’t remark regarding this situation.” Meanwhile, a representative for BlockFi said the organization “doesn’t remark on market reports.”

In the previous week, BlockFi and FTX declared that the moneylender had gotten a $250 million rotating credit extension from the trade.

“This arrangement additionally opens future joint effort and development between BlockFi and FTX as we work to speed up thriving overall through crypto monetary administrations,” BlockFi CEO Zac Prince tweeted at that point.

In the event that FTX ends up getting BlockFi, it won’t be whenever it first began term sheet exchanges by offering a bailout. The trade accomplished something almost identical to Japanese fintech organization Liquid Group, and eventually settled the negotiation to purchase the organization for an undisclosed sum in April.

FTX offered the company a $120 million loan after it had $90 million stolen in a hack and then announced that it was in talks to acquire the company in February this year. 

The Official News Desk of UNFT News

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