FTX Becomes Savior in Shaky Cryptocurrency Market... "BlockFi Loan Extension"

Sam Bankman-Fried, founder of the US cryptocurrency exchange FTX

[Asia Economy Reporter Jeong Hyunjin] Sam Bankman-Fried, founder of the US cryptocurrency exchange FTX, has emerged as a savior for the cryptocurrency market, which is experiencing great turmoil. Amid a significant loss of trust in cryptocurrency lending platforms, he has dispelled fears of market collapse by extending loans not only to Voyager Digital but also to BlockFi.

According to Bloomberg and other sources on the 21st (local time), BlockFi announced that it had agreed to extend a loan period worth $250 million (approximately 323.4 billion KRW) from FTX. Last week, FTX helped Voyager Digital overcome its crisis by providing loans amounting to about $485 million in cash and Bitcoin.

On the same day, Bankman-Fried stated on his Twitter that BlockFi faces no risks from debts or Celsius, saying, "BlockFi is financially strong, all operations are normal as they have been, and assets are safe."

This loan extension news came amid the cryptocurrency market shaking following the collapse of the Korean-style cryptocurrency Terra-Luna and the Celsius payment suspension incident. Anthony Scaramucci, founder of the US hedge fund SkyBridge Capital, evaluated, "Sam Bankman-Fried has become the new JP Morgan. Since the 1907 crisis, he is rescuing the cryptocurrency market from difficulties in the same way as the original JP Morgan."

Bloomberg reported that major cryptocurrency players have a history of stepping in to rescue companies facing difficulties in the market. Last year, FTX provided a $120 million loan when Liquid Group’s Japanese cryptocurrency exchange was hacked by hackers. Subsequently, FTX acquired Liquid. In April, Binance also led a funding round to help Axie Infinity, which experienced a hacking incident, raise $150 million.