Morgan Creek Says FTXs Try to Counter BlockFi Bailout
Morgan Creek Blockfi
Modified Date:- Published Date:-Categories: Cryptocurrency
Asset manager Morgan Creek is looking to raise US$250 million to counter the bailout of troubled crypto lender BlockFi, the digital crypto exchange FTX, according to a report by CoinDesk. The report says Morgan Creek is attempting to raise funds to buy a majority stake in BlockFi, citing leaked investor calls from last week. The US asset manager is one of the largest investors in BlockFis, participating through the BlockFis D Series fundraise. The move comes after FTX offered to extend a US$250 million revolving credit facility to BlockFi. On the call, Morgan Creek Managing Partner Mark Yusko said that BlockFi had not received any equity financing options at the time. Yusko said that among the other credit offerings, FTX was the only one that offered not to subordinate a client's assets to an investor. Otherwise, depositors would have to wait for a new lender to repay, he added. But in return, FTX got the option to buy BlockFi at essentially zero price, only investors in the latest increase in the company's most senior tranches.
Morgan Creek, Cryptocurrency BlockFi, US, FTX, CoinDesk, Crypto Lender, Digital Crypto Exchange