BlockFi has secured a $250M revolving credit facility from FTX, the company’s co-founder Zac Prince said in a tweet. He added that the credit will provide BlockFi with access to capital that further bolsters its «balance sheet and platform strength.»
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Prince also said that the proceeds of the credit facility will be «contractually subordinate» to all client balances across all account types and will be used «as needed.»
«This agreement also unlocks future collaboration and innovation between BlockFi & FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our commitment to the strength and accessibility of crypto markets.»
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In November 2021, reports said that the US Securities and Exchange Commission (SEC) started investigation against BlockFi over its product that pays customers high interest rates for lending out cryptocurrency.
The watchdog was trying to find out whether the company’s accounts are akin to securities. However, officially, the SEC has not accused BlockFi of any wrongdoing.
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