FTX and Ledn Compete for Troubled BlockFi – Reports
Both major crypto exchange FTX and crypto lender Ledn have reportedly joined the race for a stake in the troubled crypto lender BlockFi.
Bloomberg and CNBC reported about the ongoing negotiations between BlockFi and FTX. According to CNBC’s undisclosed sources, FTX is close to finalizing a term sheet to buy BlockFi for USD 25m and a deal is expected to be signed by the end of this week. In March, the lender was valued at USD 3bn.
However, Zac Prince, CEO of BlockFi, said that they “aren’t being sold for USD 25m.”
Meanwhile, per Bloomberg’s undisclosed sources, Ledn would lead a funding round of up to USD 400m and provide a USD 50m equity contribution that would give Ledn a “significant portion of the company.” Other investors would include ParaFi Capital, per the report.
Ledn CEO Adam Reeds confirmed to Bloomberg that the firm “is currently evaluating a number of opportunities to broaden its leadership in digital asset lending and beyond” but declined to comment any further. Other involved companies declined to comment on the matter.
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Learn more:
– BlockFi Secures USD 250M Credit Line from Bankman-Fried’s FTX
– SEC’s Peirce Says Crypto’s Lack of ‘Bailout Mechanism’ Is a Strength; FTX CEO as a ‘White Knight’
– More Crypto Meltdowns Could Be Seen This Summer, but the Worst Is Behind Us – Pantera’s Morehead
– Celsius’ Positions are Now Healthier, Three Arrows Capital Was a ‘Victim of Contagion’ – Nansen
