BlockFi CEO has reportedly denied a $ 25 million selling price as FTX is approaching a deal with a crypto lender.

BlockFi’s boss denied reports on Thursday that FTX was about to buy his embarrassed crypto lender for just $ 25 million during the ongoing “crypto winter” terms. Bitcoin prices plunge that upset investors..

BlockFi CEO Zac Prince said shortly after FTX of cryptocurrency billionaire Sam Bankman-Fried reported that it would take days to buy a struggling company at a significant discount.

The rumored $ 25 million is a 99% discount from BlockFi’s latest personal rating of $ 4.8 billion.

“There are lots of market rumors. We can 100% confirm that it’s not selling for $ 25 million. We encourage everyone to trust only the details they hear directly from @BlockFi,” Prince said. Mr. says. “Share more with you as soon as possible.”

The post also contacted FTX for comment.

Reported by CNBC The FTX is about to buy BlockFi for $ 25 million in a transaction that was “expected to be signed by the weekend.” One source said the final price tag could shift by Friday.

Another source told Outlets that BlockFi’s equity investors have been “cleaned up” as lenders struggle to survive the cryptocurrency price decline spiral.

FTX recently expanded BlockFi’s $ 250 million credit line.
Nur Photo via Getty Images

Prince’s tweet did not explicitly rule out the possibility of selling BlockFi, which reached an agreement with FTX on an emergency credit line of $ 250 million last week. BlockFi officials declined to provide further comments on the potential sale.

“The BlockFi team has always shown a strong prejudice against careful risk management and swift action. Protecting a customer’s assets is a top priority for enabling the customer to operate from a strong position. FTX is pleased to partner with BlockFi, a leader in the digital asset ecosystem, to deliver top-notch products to its customers, “Bankman-Fried said in a statement on the $ 250 million credit line. I am.

According to previous reports, BlockFi is likely to sell for just $ 25 million.
Dpa / picture alliance via Getty I

Bitcoin’s value temporarily fell below $ 19,000 on Thursday as investors responded to growing concerns about a liquidity crisis hitting key operators in the sector in preparation for a potential recession. Cryptocurrency hedge fund Three Arrows has been ordered to liquidate this week after facing a legal objection from creditors over unpaid debt.

Earlier this month, Brockfi, whose backers include Peter Thiel of Technology Billionaire, revealed that he would cut staff by 20% during what Prince described as “a dramatic change in macroeconomic conditions.” did.

Sam Bankman Fried
Sambankman Fried is a FTX billionaire head.
CQ-RollCall, Inc via Getty Images

“We are sticking to our commitment to ensure that BlockFi is here for the long term,” Prince said at the time. “Our clients do not experience significant changes in the quality of service they expect, their funds are protected and all platforms and products continue to operate normally.”

A few days later, Post reported that BlockFi is struggling Raise cash to help bring the business to life, even after offering to receive a significant discount on its valuation.

BlockFi CEO has reportedly denied a $ 25 million selling price as FTX is approaching a deal with a crypto lender.

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