FTX has also agreed to provide BlockFi with a $400 million revolving line of credit, Prince revealed in a tweet. He added that BlockFi was facing a surge in withdrawals following the news of the crypto lending platform. Celsius Network hang.
Fears of a possible recession in the US due to aggressive rate hikes by the Federal Reserve this year have roiled risky assets, including cryptocurrencies. This provoked the collapse of the industry, which was booming last year.
Last month, BlockFi cut its headcount by 20% and implemented a number of cost-cutting measures, such as cutting spending on marketing and executive compensation.
Companies use revolving credit lines as supplementary financing to combat adverse impacts on other sources of income. For the most part, these facilities remain unused.