BlockFi CEO Denies FTX Is Set to Acquire Crypto Lender for Only $25M

[Jaya60]

If a deal goes through, it won't be the first time FTX started an acquisition with a line of credit.If a deal did come close to that, FTX would be paying pennies on the dollar for the embattled cryptocurrency lending company. BlockFi, which is based in New Jersey, had a valuation of $3 billion when it raised its $350 million Series D round last March.

Since then, the company has reached a $100 million settlement with state regulators and the U.S. Securities and Exchange Commission over its BlockFi Interest Accounts and is rumored to now be holding a large portion of toxic debt as part of the fallout from hedge fund Three Arrows Capital’s liquidation.more