HomeNEWSFTX bailout in doubts as fresh $600m loan with BlockFi surfaces

FTX bailout in doubts as fresh $600m loan with BlockFi surfaces

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According to a popular crypto trader identified as Ran Neuner, BlockFi has more than a $600 million loan with FTX/Alameda. In a tweet today, Neuner cited sources that are familiar with the matter, indicating that the CEO of FTX, Sam Bankman-Fried tried to repay the loan in the last few days. Further, the trader submitted that in the end, the CEO was left helpless as he couldn’t get financial help to repay the loan.

The report will add more to the burning fire regarding the big hole in FTX/Alameda balance sheet. As it stands, there are a lot of lapses in the firm’s financial position after reports surfaced that most of FTX Alameda’s assets are tied to FTT. Currently, there are allegations against the cryptocurrency exchange regarding the mismanagement of users’ funds. Therefore, provoking regulators to investigate the activities of the cryptocurrency exchange.

Presently, the FTX is accessing numerous options to ensure that normalcy returns to the activities of the cryptocurrency exchange. Due to the crisis, users of the cryptocurrency exchange experienced withdrawal difficulties. In a recent tweet, the CEO of FTX, Sam Bankman-Fried said there has been a massive withdrawal of funds from the platform in the last few days. Therefore, prompting the CEO to give a hint that he seeking ways of getting liquidity for the cryptocurrency exchange.

How the report is likely to block financial bailout FTX

However, Sam Bankman-Fried has apologised to investors for the crisis FTX is enduring at the moment. The CEO admitted that most of it were his fault while admitting he could have done better to avert the crisis. Now, the recent revelation will surely pose a setback to any potential bailout. Previously, Binance offered to acquire the cryptocurrency exchange at the inception of the crisis. Suprisingly, the firm pulled out citing financial complications relating to the firm’s debt.

Before the report by Neuner, the last relationship between FTX and BlockFi was a negotiation for a possible takeover of the Crypto lender. Then, the cryptocurrency exchange entered into an agreement with BlockFi to acquire it for $240 million. Though the takeover didn’t materialize in the long run. Now, it is surprising to discover that the cryptocurrency exchange is owing BlockFi.

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