A cryptocurrency lending platform founded by Zac Prince and Flori Marquez in 2017.
The application offers:
- borrowing
- lending
- trading
In 2022, the company encountered financial difficulty.
Option To Buy
On July 1, 2022, FTX received an option to buy BlockFi for a maximum of $240 million. It also agreed to provide a $400 million loan to keep operations going. The company laid off 20% of its workforce in an effort to size itself appropriately.
Problems were compounded when it took an $80 million loss due to the bankruptcy filing of hedge fund Three Arrows Capital. The company will be a creditor in the case.
Some are estimating that FTX's purchase price could go as low as $25 million.
The company was valued, at one time, at $4.8 billion.
$100 Million Fine By SEC
In February 2022, the company agreed to a $100 million fine by the Securities and Exchange Commission (SEC) for failing to register its lending products according to the Investment Company Act of 1940.
The deal divided the fine between the SEC and 32 states. The agency will receive the $50 million while the states will also split the same amount.
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