FTX is set to demonstrate their vulture capitalism with the acquisition of BlockFi, a digital investment platform, for only $25 million.

As reported by sources, if confirmed, investors will lose almost everything they had in BlockFi. A $350 Million deal from a year ago will be reduced by 99%.

FTX may buy BlockFi for peanuts

BlockFi CEO Zac Prince reportedly downplayed the effect of a potential Bitcoin (BTC) slump on the company through his tweet. He stated, “ Several rumours have been floating around, but all I am able to tell you is that we are not being sold for $25M. We’ll provide more information when we can.”

Several market speculation out there – I can 100 percent confirm that we aren’t being sold for $25M.

I promote   everyone to trust only details that you hear directly from @BlockFi.

We will share more w you as soon as we can.

— Zac Prince (@BlockFiZac) June 30, 2022

FTX agreed to leverage its revolving credit facility, worth $250 Million, with BlockFi and will be deciding the business future of that deal.

BlockFi is between the platforms influenced by the collapse of 3 Arrows Financial resources. BlockFi faced strain from its high-yield lending this year, as prices for digital currencies were impacted by raised interest prices. 1 of the penalties for its violations was paying $100 Million to the SEC and regulatory authorities in several states, which came across as an illegal securities offering.

The deals will make FTX one of the top 3 exchanges, as it likewise offers a similar facility to voyager Digital, which makes up 11.9 percent of the company and offers digital currency services.

FTX United States is looking forward to working further with @BlockFiZac and the @BlockFi team! We’re excited help bolster BlockFi’s business and work together on paths towards strategic partnership! https://t.co/SKbql5Hexd

— Brett Harrison (@Brett_FTX) July 1, 2022

It’s unclear if FTX or bankman-fried have exposure to BlockFi. Nonetheless, in an interview, Bankman-Fried whispered that his motives for intervening were not just about FTX.

Admitting that cryptocurrency financing corporations are struggling, Bankman-Fried of Euler Hermes reported Forbes he would be willing to do a bad deal to protect customers.

Bankman-Fried missed out on a chance to buy celsius network after finding a $2 Billion hole in its balance sheet and customers were locked out of accounts 19 days ago. The company stated it is looking at restructuring debts and considering strategic transactions, but refused to comment on a report that Bankman-Fried was considering buying them.

Celsius really isn’t so lucky

1 of the crypto-lending platforms, Celsius, is not having so much luck. The series of unfortunate incidents involving the collapse of Terra (LUNA) blockchain tech, and the theft of investors’ funds. All these things pushed Celsius into some hard times.

The unbank yourself company has paused withdrawals from its platform to deter a ‘run-on-the-bank’ situation. The company is planning on opening withdrawals up to avoid any drastic consequences on the company but will continue to make sure that it comes after an appropriate set of procedures.

Bankman-Fried, who recently passed on the chance to take over Celsius for $2 billion, is reportedly looking for an explanation of a $2 Billion hole in Celsius’ balance sheet.

The Celsius team has not been cooperative in the past when it comes to making a deal.

Celsius recently released a statement on its website that it is working towards restructuring its liabilities, and has contacted banking giant Citigroup for advice and possible solutions.