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July 1, 2022, 2:56 p.m. EDT

FTX signs deal to bail out crypto lender BlockFi with option to buy it for up to $240 million

Crypto exchange FTX signed a deal on Thursday to bail out embattled digital-asset lender BlockFi. The deal also includes an option for FTX to buy BlockFi at a maximum price of $240 million, based on performance triggers, according to Zac Prince, chief executive at BlockFi, in a tweet. FTX US will also provide a $400 million revolving credit facility to BlockFi, which found itself in a perilously fiscal situation after it reportedly lost about $80 million resulting in exposures to crypto hedge fund Three Arrows, which was reportedly ordered by a British Virgin Isle court to liquidate.

Link to MarketWatch's Slice.