On June 21, the US based crypto exchange, BlockFi, signed a term sheet with the famous crypto platform FTX. The term sheet will allow the firms to work together in order to bring more products and services to both crypto and non-crypto based individuals.
According to the company’s founder and CEO, Zac Prince, tweet, “BlockFi has signed a $250 million revolving credit facility with FTX crypto exchange. A revolving credit facility is a sort of credit that allows you to take funds, utilise them to support your company, return them, and then withdraw them again as needed.”
The $250 million credit for BlockFi comes in the midst of market volatility, which has seen several crypto businesses reduce their workforces and make critical modifications to their operations in order to stay alive. Because of the market’s bearish domination, several crypto platforms had to close their doors and halt withdrawals.
The Prince praised his team’s work throughout the current volatility in the crypto market and noted that the new line of credit would be used to protect consumers’ cash across all account types.
BlockFi was fined $100 million in February of this year for its high-yield interest accounts, which the US Securities and Exchange Commission classified as security products.This fine was just one of many issued to firms by the Securities and Exchange Commission (SEC) for unregistered token issuance.
