With no central bank willing to lend a hand,cryptocurrencies are turning to their peers for assistance.
Sam Bankman- Fried has signed deals to bail out two firms in a matter of weeks.
A $250 million revolving credit facility has been agreed to by FTX. The financing would help BlockFinavigate the market from a position of strength, according to Bankman- Fried.
He said that they take their duty seriously to protect the digital assets.
BlockFi laid off 20% of its staff earlier this month. A report from The Block said earlier this month that BlockFi was in talks to raise $1 billion, down from $3 billion a year ago.
When contacted by CNBC, BlockFi was silent.
Alameda Research, Bankman- Fried's quantitative research firm, will provide it with $500 million in financing.
The deal includes a $200 million credit line of cash andUSDC stable coins, as well as a separate 15,000-bitcoin revolving facility worth approximately $300 million.
Several key players in the space are facing financial difficulty as a result of the plunge in the value of digital currency.
The Federal Reserve's interest rate hikes and the collapse of terraUSD are causing the market to fall hard.
All account withdrawals were halted last week by Celsius. Hundreds of millions of dollars are tied up in a token called stETH by the firm, which takes users'cryptocurrencies and loans them out to make more money.
According to the Financial Times, Three Arrows Capital has been forced to liquidate some of their holdings.
The extent of the damage was revealed on Wednesday.
If the company doesn't pay, it will take a loss on the loans. As of Wednesday, 3AC had borrowed over 300 million dollars in the form of bitcoins and stable coins.
3AC requested an initial repayment of $25 million inUSDC by June 24 and a full repayment by June 27.
The firm said it intends to recover the funds from 3AC and is in talks with its advisers.
The amount that the company will be able to recover from 3AC is not yet known.
The shares fell as much as 60%.
A rescue by another firm is one of the options being considered by 3AC. The company didn't reply to many questions.
According to Forbes, Bankman-Fried is one of the wealthiest people in the world. FTX had a $32 billion valuation at the beginning of the 21st century.
The 30-year-old has emerged as a lifesaver for the $900 billion market. Bankman-Fried told NPR that he feels his exchange has a responsibility to seriously consider stepping in even if it is at a loss to ourselves.
His actions show how a lack of regulation for the industry means that firms can't turn to the federal government for a rescue when things get bad.
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