FTX bails out Voyager and BlockFi

As well as providing financial assistance to BlockFi, FTX is also partnering with the crypto bank

Bailout Plan                                 
Sam Bankman-Fried, CEO of FTX, has signed deals to bail out both BlockFi and Voyager Digital – Photo: Getty Images
                                

Sam Bankman-Fried, CEO of FTX, the cryptocurrency derivatives exchange has signed deals to bail out both BlockFi the crypto bank and Voyager Digital, the US-based cryptocurrency platform.

Voyager Digital Holdings, a subsidiary of Voyager Digital, announced it has entered into an agreement with Alameda Ventures, Bankman-Fried’s quantitative research firm and received $200m (£163m) in cash and USD Coin (USDC). Alameda also injected 15,000 BTC worth $300m (£244m) into Voyager.

The statement from Voyager added: “As previously disclosed, the proceeds of the credit facility are intended to be used to safeguard customer assets in light of current market volatility and only if such use is needed.”

FTX also partnering with BlockFi

As well as providing financial assistance to BlockFi with an injection of $250m (£203m), FTX is also partnering with the crypto bank.

Via Twitter, Zac Prince, CEO of BlockFi, said: “This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our commitment to the strength and accessibility of crypto markets.”

Bankman-Fried revealed in a series of tweets he chose to financially aid BlockFi because it “has careful risk management and great leadership” and that “sometimes leadership means acting decisively and that’s what BlockFi did”.

The CEO of FTX concluded his tweets by adding: “We take our duty seriously to protect the digital asset ecosystem and its customers.”

Crypto bear market to blame

The crypto bear market is being blamed as the main reason why so many crypto companies are facing financial difficulties. The lead crypto Bitcoin (BTC) was trading earlier at $20,456 while Ethereum (ETH) was changing hands at $1,104, according to CoinMarketCap

The collapse of the stablecoin TerraUSD (UST) and its sister token Terra (LUNA) in May have also added to the crypto market’s financial issues.    

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