Summary:<\/p>\n
The Sam Bankman-Fried-led crypto exchange of FTX<\/a> is reportedly in talks to acquire a stake in the crypto lending platform of BlockFi. According to<\/a> a report by the Wall Street Journal, discussions between FTX and BlockFi are ongoing with no clear structure of an acquisition agreement.<\/p>\n In addition, news of FTX acquiring a potential take in BlockFi comes less than a week after the exchange extended a $250 million line of credit<\/a> to the latter. BlockFi’s CEO, Zac Prince, explained via Twitter that the funds would be used to provide the company with capital that bolsters the platform’s balance sheet and strength.<\/p>\n Mr. Prince added that the credit facility is ‘intended to be contractually subordinated to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed.’ He also pointed out that the team at BlockFi had performed in an exemplary manner through the ongoing market volatility, and the platform was committed to ensuring that client funds were safe.<\/p>\n To note is that Alameda Research, the quantitative research firm founded by Sam Bankman-Fried, also provided Voyager Digital with $500 million in financing<\/a> late last week. Voyager Digital later confirmed<\/a> that it had some exposure to the recently insolvent hedge fund of Three Arrows Capital.<\/p>\n Therefore, it can be loosely concluded that Mr. Bankman-Fried is bailing out crypto projects that have been hit hard by the ongoing crypto market drawdown. His actions have led the crypto community and even veteran stock trader Jim Cramer to refer to him as the JP Morgan of crypto, as seen in the following tweet.<\/p>\n Sam Bankman-Fried doles out credit lines to save crypto institutions. He's the new JP Morgan!<\/p>\n — Jim Cramer (@jimcramer) June 22, 2022<\/a><\/p><\/blockquote>\nFTX Had Earlier this Week Provided BlockFi with a $250M Line of Credit.<\/h2>\n
Sam Bankman-Fried is the ‘JP Morgan’ of Crypto.<\/h2>\n
\n