FTX bails BlockFi out with $250 million

BlockFi has secured a $250 million credit facility from crypto exchange giant FTX.

Zach Prince tweeted that BlockFi has “signed a term sheet with FTX to secure a $250m revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength.”

On June 13, BlockFi announced that it would cut about 20% of staff in an effort to trim costs.

Before today’s deal with FTX, BlockFi had been struggling to close a fresh round of venture funding.

BlockFi was one of the companies that liquidated the collateral on a loan from Singapore-based crypto hedge fund Three Arrows Capital.

The company borrowed bitcoin from BlockFi but failed to meet a margin call on that loan, according to the report.

The crypto lender recently hired a five-person policy team from legal and lobbying firm, Arnold & Porter Kaye Scholer, which included partner Mark Epley and legislative and public policy practice group chair Kevin O’Neill.

This follows a record $100 million fine received from the US Securities and Exchange Commission earlier this year.