After giving a $250 million credit to the lending company BlockFi, cryptocurrency exchange FTX is allegedly in talks to buy a stake in the company.
The Wall Street Journal reported on Friday that FTX is now in talks with BlockFi about the cryptocurrency exchange buying a stake in the company, but no stock agreement has been struck.
The rumored continued discussions came after BlockFi signed a term agreement with FTX on Tuesday to get a $250 million revolving credit facility.
A BlockFi representative informed Cointelegraph, “BlockFi does not comment on market rumors.” “We are still working out the details of the agreement, therefore we are unable to provide any further details at this time. We plan to update the public with additional information on the deal’s conditions in the future.
In recent weeks, amid a bear market that has forced many businesses to cut personnel, Sam Bankman-Fried, the founder and CEO of FTX, also known as SBF, has supported a number of cryptocurrency ventures.
In order to cover losses from its exposure to Three Arrows Capital, trading company Alameda Research, managed by SBF, said on Wednesday that it had loaned 15,000 Bitcoin (BTC) to Voyager Digital.
According to SBF, Alameda and FTX “have a responsibility to carefully consider stepping in, even if it is at a loss to ourselves, to stem contagion” around the market fall, according to Cointelegraph on Sunday:
“Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”
It’s unclear whether BlockFi’s alleged financial issues or FTX’s rumored intention to buy a share in the company were connected.
However, the US Securities and Exchange Commission ordered BlockFi to pay $50 million to the organization as well as $50 million to 32 state-level regulators as part of a settlement in February for purportedly unregistered securities.
