Sambankman Fried rescues crypto lenders BlockFi, Voyager


The embarrassed crypto companies are asking their peers for help as the central bank is willing to come to the rescue.

Sam Bankman-Fried, the boss of Billionaire’s crypto exchange, has signed a deal to bail out two companies, quasi-bank BlockFi and digital asset broker Voyager Digital, in a matter of weeks.

Bankman-Fried’s cryptocurrency exchange, FTX, agreed on Tuesday to provide BlockFi with a $ 250 million revolving credit line. Bankman-Fried said the funding would help BlockFi “navigate the market from a strong standpoint.”

“We take our duty to protect the digital asset ecosystem and its customers seriously,” he tweeted.

After BlockFi said so earlier this month Dismiss 20% of staff..Meanwhile, a report from block Earlier this month, BlockFi said it was in talks to raise money in a deal valuing the company from $ 3 billion last year to $ 1 billion.

BlockFi co-founder and CEO Zac Prince added that the deal with FTX is more than just debt, it “unlocks future collaboration and innovation” between the two companies.

Voyager Digital announced last week that Bankman-Fried’s quantitative research firm Alameda Research will provide $ 500 million in funding.

This transaction is a $ 200 million cash and USDC stablecoin credit line, and an individual 15,000-Bitcoin A rotating facility worth about $ 300 million at the current price.

The plunge in the value of digital currencies over the last few weeks has caused many major companies in the field to face financial difficulties.

Bitcoin and other cryptocurrencies have fallen sharply as the market is working Federal Reserve SystemRate hike and $ 60 billion collapse terraUSDSo-called stablecoin and its sister tokens Luna..

Last week, crypto creditor Celsius Stopped withdrawals for all accounts, Blame “extreme market conditions”.Companies that receive users’ cryptocurrencies and lend them to make higher profits are believed to be binding hundreds of millions of dollars. A non-fluid token derivative called stETH..

Elsewhere, crypto hedge fund Three Arrows Capital has been forced to liquidate leveraged bets on various tokens, According to the Financial Times..

On Wednesday, Voyager revealed the extent of the damage caused by the 3AC trouble.

The company said it would lose $ 650 million on loans issued to 3AC if the company failed to pay. 3AC borrowed 15,250 Bitcoins (worth more than $ 300 million as of Wednesday) and $ 350 million USDC stablecoins.

Voyager said that 3AC requested an initial repayment of $ 25 million in USDC by June 24 and a full repayment of the full balance of USDC and Bitcoin by June 27, both amounts still repayable. He added that it wasn’t.

The company said it intends to recover funds from 3AC and is in talks with an advisor on “Available Legal Remedies.”

“At this point, we can’t assess the amount of money that can be recovered from 3AC,” Voyager said.

Voyager stock It fell 60% on Wednesday, creating a crater in the news.

ZhuSu, co-founder of 3AC, Said before His company is considering selling assets and bailouts by another company to avoid collapse. 3AC did not respond to multiple requests for comments.

Bankman-Fried is one of the wealthiest people in cryptocurrencies with an estimated net worth of $ 20.5 billion. Forbes.. His crypto exchange FTX recorded a $ 32 billion valuation in early 2022.

A 30-year-old woman has emerged as the savior of the $ 900 billion crypto market as the liquidity crisis worsens.In an interview with NPRBankman Fried said he feels that his exchange “has a responsibility to seriously consider intervening to stop the infection, even if they have a loss.”

His actions emphasize that the lack of regulation on the crypto industry means that businesses cannot seek relief from the federal government when things turn south. This is in contrast to the banking industry in 2008.

Sambankman Fried rescues crypto lenders BlockFi, Voyager

Source link Sambankman Fried rescues crypto lenders BlockFi, Voyager

The post Sambankman Fried rescues crypto lenders BlockFi, Voyager appeared first on Eminetra.


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