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FTX US Signs Option to Buy BlockFi in Crypto Sector Shakeup

FTX US, the crypto exchange co-founded by billionaire Sam Bankman-Fried, signed an agreement to inject capital into BlockFi Inc. with an option to purchase the crypto lender, a transaction born out of a market selloff that may spur further industry consolidation.

The deal includes a $400 million revolving credit facility, which is subordinate to all client funds, BlockFi said. It also gives FTX US an option to buy BlockFi for as much as $240 million, based on performance triggers. Together with other potential consideration, the deal represents a total value of as much as $680 million, Jersey City, New Jersey-based BlockFi said in an emailed statement Friday.