FTX US enters deal to buy embattled crypto lender BlockFi for up to $240M

FTX US, the American arm of cryptocurrency exchange FTX, has reached an agreement with BlockFi that will give FTX the option to acquire the embattled crypto lender for "a variable price of up to $240M based on performance triggers," BlockFi CEO Zac Prince wrote in a Twitter post Friday.The deal will also provide BlockFi with a $400M revolving credit facility, Prince said. In total, the agreement is valued "up to $680M," he added.Those terms comes after CNBC reported on June 30 that FTX neared a deal to purchase BlockFi for just $25M (99% less than its last price valuation). To date, BlockFi, has not drawn from the credit facility, Prince noted. "As a matter of principle, we fundamentally believe in protecting client funds," Prince wrote in a follow-up tweet. "Not only because it’s absolutely the right thing to do, but this also benefits the ongoing health and adoption of crypto financial services worldwide. Therefore, it was important to add capital to our balance sheet to bolster liquidity and protect client funds."Recall when FTX on June 21 had already extended a $250M emergency credit line to BlockFi in the wake of liquidity issues and sinking token prices. Previously, (June 24) FTX in talks to invest in BlockFi.