BlockFi CEO Doesn’t Want to Be Compared to Voyager, Celsius

BlockFi CEO Zac Prince confirmed the terms of a loan from one of Sam Bankman-Fried’s companies last week, and his lending company, which may be acquired, said Voyager Digital, I also got a loan from one of the Bankman-Fried companies.

If those two crypto companies sound like they’re in a similar situation, it’s because they are, in a sense. But the prince doesn’t see it that way.of Short twitter thread On Monday morning, he called on journalists and market commentators to stop comparing BlockFi to other crypto lenders.

“Two months ago we looked” the same “,” he writes. “They shut down and caused an imminent loss to the client.”

One hour after the tweet, Voyager created his own thread. Unlike BlockFi, the company has filed for Chapter 11 Bankruptcy Protection and is conducting financial restructuring.

“Customers’ cash is yours and will be returned to you subject to the settlement and fraud prevention process,” the company said on Twitter. “All customer cash is stored in the Metropolitan Commercial Bank customer account and is the same as the amount of cash in the Voyager account.”

However, there is no clear contrast between BlockFi and its struggling companions.

Last week’s report Bloomberg Note that private share funds mark BlockFi’s warrants as worthless. Warrants are derivatives that give BlockFi investors the right to acquire shares in the company.

Meanwhile, Coinshares Chief Strategy Officer Meltem Demirors noted that there are many Grayscale Bitcoin Trusts (GBTCs) on both the Three Arrows Capital and Block Fi balance sheets.

this‘Given that, sitting at this point is not a great assetof Exchange with 35% less than Bitcoin In the last two weeks. GBTC could be even worse as Three Arrows, which also passes 3AC, goes into court-ordered liquidation, with GBTC’s share for sale.

In a blog post earlier this month, Kraken’s Head of Growth Marketing Dan Held wrote that he underestimates the “stupidity and risk-taking behavior” of retailers such as BlockFi, Voyager and Celsius.

“I thought they would have matured their loan books to work, but many basically decided to act as a glorious hedge fund.” He wrote.. “We need to proactively promote transparency (like Redon with a” proof of reserve “), accountability, and integrity. “

Last week, BlockFi announced the final terms and conditions for trading with Bankman-Fried’s cryptocurrency exchange, FTX. This includes a $ 400 million revolving credit line and an option for FTX to buy the company for up to $ 240 million. Valuation of $ 3 billion March 2021.

Meanwhile, Voyager Digital has a $ 500 million loan facility from billionaire trading firm Alameda Research. However, Alameda Research is the company’s second-largest borrower (after Three Arrows Capital), The company has a debt of $ 377 million..

Details about Alameda’s loan from Voyager were revealed in Chapter 11 Bankruptcy Documents filed Wednesday.

Celsius, the first major crypto lender to freeze withdrawal on June 12, Hedge Fund Bankruptcy Three Arrows Capital..An unnamed source said block FTX considered doing a similar deal as the company, but passed because it had “a $ 2 billion hole in its balance sheet.”