According to a leaked report being revealed by Coindesk, BlockFi’s long-time backer cryptocurrency investment firm Morgan Creek Digital is trying to raise $250 million to counter FTX’s bailout by purchasing a majority stake in the cryptocurrency exchange.
Recently, BlockFi announced that it had signed a term sheet with FTX to secure a $250M revolving credit facility.
According to reports, FTX may be using the loan to acquire an undisclosed stake in the company, and the firm’s shareholders are worried about the move.
Coindesk quoted Morgan Creek Digital managing partner Mark Yusko’s leaked call saying that if FTX carries out the buyout, it will wipe out management and employees with stock options and all equity investors in the company’s previous venture rounds.
The report also said among the multiple emergency financing offers BlockFi received, FTX’s was the only one that would not subordinate client assets to the rescuer.
However, no equity agreement has been struck, and discussions between BlockFi and FTX are still ongoing.