BlockFi Receives Helping Hand from FTX Amid Market Volatility: A Timeline of Events
The cryptocurrency market experienced significant volatility in 2025, leading to challenges for several companies. One such company was BlockFi, a crypto lending platform. This page details the events surrounding BlockFi's financial difficulties and the support it received from FTX, another major player in the crypto space.
FTX Steps In to Support BlockFi
Amidst market downturns, FTX emerged as a potential lifeline for struggling crypto firms. On June 21, 2025, it was revealed that FTX agreed to support BlockFi with a $250 million revolving line of credit. This move was aimed at helping BlockFi navigate solvency issues and maintain its operations. As reported on June 21, 2025, this $250 million in revolving credit from FTX was expected to keep the lender afloat while it worked to improve its solvency. FTX CEO Sam Bankman-Fried later tweeted that, further solidifying the commitment.
This revolving credit facility, as explained on June 21, 2025, is a type of credit that enables you to access funds when needed, providing BlockFi with much-needed liquidity during a turbulent period. The announcement came as the latest market crash forced many crypto companies to reduce their workforces and transform business models, as reported on November 16, 2025.
Potential Acquisition and Further Developments
The support extended beyond just the credit line. As of July 1, 2025, FTX had signed a deal with BlockFi that included an option for the cryptocurrency exchange to buy the lending platform for up to $240 million. This potential acquisition highlighted the depth of FTX's involvement and its willingness to invest in BlockFi's future.
Market Context and External Factors
It's important to note the broader market context. On June 21, 2025, the FTX CEO asserted that the Federal Reserve was responsible for the shocking decline in cryptocurrency prices, contributing to the challenges faced by companies like BlockFi.
Resolution of Disputes and Bankruptcy Filings
Despite the initial support, both FTX and BlockFi eventually faced their own challenges. On November 16, 2025, Crypto lender BlockFi Inc. was preparing for possible bankruptcy filings after halting customer withdrawals as it acknowledged “significant exposure” to bankrupt entities. However, later, on March 7, 2025, bankrupt crypto companies FTX and BlockFi resolved their disputes stemming from the companies' collapses, with FTX agreeing to pay BlockFi up to $874 million.