Blockfi Secures $250m Revolving Loan From Ftx -

The most interesting feature of the $250 million revolving credit facility secured by BlockFi from FTX in June 2022 was its to client balances. Key Strategic Features

FTX's cut-price BlockFi acquisition option a warning for investors BlockFi Secures $250M Revolving Loan From FTX

: The facility was part of a larger deal that granted FTX an option to acquire BlockFi for up to $240 million. This price represented a significant discount (over 90%) from BlockFi's previous multi-billion dollar valuation. The most interesting feature of the $250 million

: The deal was positioned by then-FTX CEO Sam Bankman-Fried as a "white knight" move to stem industry-wide liquidity issues following the collapse of other major lenders. Long-term Impact : The deal was positioned by then-FTX CEO

: The loan proceeds were specifically designed to be subordinate to all client assets . This meant that if BlockFi failed, depositors across all account types—including Interest Accounts (BIA) and loan collateral—would theoretically be repaid before FTX could reclaim its loan.