Cryptocurrencies
FTX Nears Deal to Buy Lender BlockFi in Likely Fire Sale
- Deal talks in place after FTX agrees to provide credit line
- Depressed value reflects liquidity troubles in crypto industry
Photographer: Gabby Jones/Bloomberg
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FTX, the digital-asset exchange co-founded by Sam Bankman-Fried, is nearing an agreement to buy BlockFi Inc. after extending a credit line to the beleaguered crypto lending platform, according to people familiar with the matter.
CNBC reported earlier that FTX is paying roughly $25 million and that a term sheet is almost complete, citing unnamed sources. Zac Prince, chief executive officer of BlockFi, responded in a tweet, saying “I can 100% confirm that we aren’t being sold for $25M.” Prince didn’t comment in the tweet whether BlockFi was in acquisition talks.