FTX to Acquire a Stake in BlockFi

Cryptocurrency derivatives exchange FTX is negotiating to buy a stake in landing platform BlockFi, the Wall Street Journal reports.

According to the publication, the parties have not yet reached a final agreement.

BlockFi signed a memorandum of understanding with FTX on June 21 for a $250 million revolving line of credit. Analyst FatMan has called the deal a “deal with the devil.”

A BlockFi spokesperson has said the company “does not comment on rumors.” He has said:

“We are still discussing the terms of the deal and cannot share additional information at this time. We expect details on the terms of the deal to be made public at a later date.”

It has recently been reported that BlockFi is preparing to close a new funding round at a $1 billion valuation instead of the previously planned $5 billion. After that, the company announced the dismissal of a fifth of the staff.