(Bloomberg) -- FTX US, the crypto exchange co-founded by billionaire Sam Bankman-Fried, signed an agreement with BlockFi Inc. that includes an option to purchase the crypto lender for as much as $240 million.
The deal includes a $400 million revolving credit facility which is subordinate to all client funds, BlockFi said. It also gives FTX US an option to buy BlockFi at a variable price based on performance triggers. Together with other potential consideration, the deal represents a total value of as much as $680 million, Jersey City, New Jersey-based BlockFi said in an emailed statement Friday.
BlockFi is among those affected by a liquidity crunch in the industry and the troubles at crypto hedge fund Three Arrows Capital Ltd. Zac Prince, chief executive officer of BlockFi, has acknowledged that the firm liquidated a large client that failed to meet its obligations on an overcollateralized margin loan.
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