FTX has additionally agreed to offer BlockFi with a $400 million revolving credit score facility, Prince stated in a tweet. He added that BlockFi has confronted a soar in withdrawals after information of crypto lending platform Celsius Community’s freeze.
Fears of a doable U.S. recession attributable to aggressive charge hikes from the Federal Reserve have roiled dangerous belongings this yr, together with cryptocurrencies. That has sparked a meltdown in what was simply final yr a booming business.
Final month, BlockFi minimize 20% of its headcount and carried out a number of cost-cutting measures resembling lowering advertising spending and govt compensation.
Corporations use revolving credit score amenities as backstop financing to fight antagonistic impacts on different sources of revenue. For probably the most half, these amenities stay undrawn.