Ledn Competes with FTX to Acquire Crypto Lender BlockFi: Report

Crypto lender Ledn has reportedly joined the race along with FTX cryptocurrency exchange for a stake in the troubled crypto lender BlockFi. Ledn proposed to lead a funding injection of up to $400 million, with a $50 million equity contribution, according to a report by Bloomberg, citing anonymous sources. ParaFi Capital is also likely to be another investor in the deal. Ledn’s proposal incorporates new funding in contrast to FTX, which is seeking a complete takeover. Commenting on the matter, Ledn Chief Executive Officer Adam Reeds said: “Given its operational strength, Ledn is currently evaluating a number of opportunities to broaden its leadership in digital asset lending and beyond. At the moment, we cannot share any additional details.” BlockFi CEO Refutes Reports of FTX Buying Out for $25M Earlier today, CNBC reported that FTX was close to signing a deal to purchase BlockFi for $25 million which is 99 percent less than prior estimates of $25 billion. However, the CEO of BlockFi Zac Prince clarified the rumor, saying: “Lots of market rumors out there – I can 100% confirm that we aren’t being sold for $25M. I encourage everyone to trust only details that you hear directly from BlockFi.” With its exposure to the insolvent Three Arrows Capital (3AC) and the overall crypto market turmoil, BlockFi is among the crypto firms facing a major liquidity crunch. Earlier in June, FTX offered BlockFi a $250 million revolving credit line...