FTX and Morgan Creek Want a Piece of Troubled Crypto Lender ‘BlockFi’
Morgan Creek Blockfi
Modified Date:- Published Date:-Categories: Cryptocurrency
FTX and Morgan Creek Want a Piece of Troubled Crypto Lender ‘BlockFi’
Less than a week after giving BlockFi a US$250 million line of credit, Bahamian-based exchange FTX is now in talks to acquire a stake in the troubled crypto lending company. The firm told its investors that FTX's line of credit offering effectively wipes out all BlockFi shareholders, including investment firm Morgan Creek Digital.
For this reason, according to a leaked investor call, Morgan Creek — a longtime supporter of BlockFi — is attempting to raise a similar amount from investors to buy a majority stake in the troubled lender. Although Morgan Creek declined to comment on the move, several venture capital funds are said to be exploring ways to provide equity financing to BlockFi as the lender struggles, according to one insider.
Yusko also revealed on the leaked call that FTX and BlockFi were "probably three days away from signing a definitive agreement". In what may prove to be the only bright light in a bleak month for BlockFi — and crypto in general — Prince announced in a June 14 tweet that “nearly 20 percent” of its employees would be let go in the wake of the current market downturn.
Morgan Greek Digital, a cryptocurrency focused Hedge fund and Morgan Greek Blockfi, the crypto lending platform are in a battle for control as they are actively seeking to invest in or acquire a majority stake in 'blockfi' the troubled crypto lending platform. Sources indicate that the trio have been in talks with other parties who may approach the group.