Cryptocurrency exchange FTX is reportedly considering acquiring a stake in BlockFi, shortly after it provided it with a $250 million revolving credit facility, The Wall Street Journal has learned.
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According to sources close to the matter, the talks are still in progress and no equity agreement has been reached yet. The talks come amid reports saying that many crypto lenders, including BlockFi, are now nervous about their loan books for crypto miners as they had earlier provided them with billions of loans backed by mining rigs, whose prices started rapidly falling down.
In November 2021, reports said that the US Securities and Exchange Commission (SEC) started investigation against BlockFi over its product that pays customers high interest rates for lending out cryptocurrency. The watchdog was trying to find out whether the company's accounts are akin to securities. However, officially, the SEC has not accused BlockFi of any wrongdoing.
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