The source says FTX is closing in on a deal to buy crypto lender BlockFi for $25 million in a sell-off.

Sources told CNBC that FTX is looking to buy crypto lender BlockFi for pennies on the dollar.

Three sources, who asked not to be named because the deal was discussed in a confidential manner, said the agreement on the terms is almost at the finish line and is expected to be signed by the end of the week. FTX will pay approximately $25 million, 99% below BlockFi’s latest private valuation, one source said. Another person with direct knowledge of the deal put the price closer to $50 million. Jersey City, New Jersey-based BlockFi was last valued at $4.8 billion, according to PitchBook.

The source said the price tag could change between today and Friday. Closing the deal could also take several months. The person added that the deal could eventually become an option to acquire BlockFi at a later date, pending regulatory approval.

Friday also marks the end of the quarter, which one source said was the catalyst for the deal to be signed. The Wall Street Journal first reported that FTX looking for shareholding in the company, while The Block reported this week that a direct deal is in the works.

An FTX spokesperson said the company “won’t comment on the matter.” A spokesperson for BlockFi said the company “does not comment on market rumors.” BlockFi CEO Zack Prince denied the $25 million figure in a tweet, calling the figure “a market rumour.”

The sell-off comes a week after FTX extended a $250 million emergency line of credit to BlockFi. FTX CEO Sam Bankman-Fried said at the time that the funding would help BlockFi “drive the market from a position of strength.”

These are the latest implications for crypto lending companies amid falling crypto asset prices. The funds struggled with liquidity problems as counterparties failed to meet margin requirements. Celsius and CoinFlex have suspended customer withdrawals, citing “extreme market conditions.” The largest cryptocurrency hedge fund Three Arrows Capital has been liquidated, according to CNBC. informed earlier, which was one of the biggest casualties of the crypto bear market.

Another source said investors in BlockFi have been “destroyed” and are now writing off the cost of their losses. The person said that several proposals were being considered because there was no “store clause” in the list of conditions.

“There was more than one deal on the table,” a source told CNBC.

Billionaire Bankman-Fried was considered the lender of last resort in space. Beyond BlockFi, Bankman-Fried Alameda Research on condition a $500 million loan to Voyager.

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