FTX CEO Sam Bankman-Fried is helping out crypto companies hit by the crash with monetary aid.
FTX, one of the world’s biggest crypto exchanges, signed a $250m (£204m) revolving line of credit to crypto lending platform BlockFi, both companies announced on Tuesday.
“We take our duty seriously to protect the digital asset ecosystem and its customers,” Bankman-Fried tweeted.
The credit facility will provide “access to capital that further bolsters our balance sheet and platform strength,” BlockFi CEO Zac Prince tweeted.
BlockFi said last week that it cut about 170 jobs and said it liquidated “a large client that failed to meet its obligations on an overcollateralized margin loan,” amidst reports of hedge fund 3AC’s insolvency.
Last week, a quant trading shop founded by Bankman-Fried called Alameda Research offered crypto broker Voyager Digital a $200m (£163.3m) and 15,000 Bitcoin revolving line of credit.
Voyager said on Friday this was signed to, “better serve and protect our customers in current market conditions.”
The aid by billionaire Bankman-Fried comes as the crypto market experiences a sharp crash, as prices of major cryptocurrencies tumbled and companies and investors were hit.
“I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion,” he said to NPR on Sunday. “Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”