According to court documents that have emerged, FTX has given BlockFi a $250 million FTT loan.
The collapse of FTX continues to affect the cryptocurrency industry. New filings have revealed that BlockFi has received a $250 million FTT loan from FTX.
FTT Credit from FTX to BlockFi
Controversy surrounding FTX’s native token was one of the major reasons the exchange went bankrupt. In addition, it turned out that the crypto loan company was also given a loan in the form of FTT.
The process that FTX has been through for the last two weeks has been the most important agenda of the crypto money industry. With the platform going bankrupt, a domino effect has also emerged on many crypto companies.
Binance is also alleged to have played a role in the downfall of FTX. The process first started when Binance sold its FTT tokens. This action paved the way for the market to dispose of its FTTs and the price of the asset to drop significantly.
FTX filed for Chapter 11 bankruptcy a few days later, and the company’s CEO, Sam Bankman-Friad, announced his resignation.
Court documents reveal that FTX awarded BlockFi $250 million in FTT loans. The depreciation of FTT epitomizes the frightening situation that BlockFi is in.
The US House of Representatives Financial Services Committee plans to hold a hearing on FTX’s collapse in December.
