FTX reportedly approaches a deal to buy BlockFi in "fire sale"

According to CNBC, the cryptocurrency exchange FTX is hammering out the details on an agreement to acquire crypto lending platform BlockFi. Earlier in June, it was reported that FTX had agreed to lend BlockFi $250 million, bailing out the exchange after it suffered substantial losses.

BlockFi was last valued at $4.8 billion, but FTX is expected to pay around $25 million to buy the company. BlockFi CEO Zac Prince refuted what he described as a "market rumor": "I can 100% confirm that we aren't being sold for $25M." A leaked call with Morgan Creek Digital investors suggested they were trying to counter FTX's offer, and that BlockFi was being valued at less than $500 million. The call also revealed that BlockFi's loan to Three Arrows Capital had been $1 billion, and that it was backed by collateral of $1.33 billion in Bitcoin and GBTC.

CNBC reported that, according to one of their sources, "equity investors in BlockFi are 'wiped out' and are now writing off the value of their losses."