In response to FTX’s bailout, Morgan Creek Digital, BlockFi long-time supporter, is reportedly looking to raise $250 million, as reported by cryptocurrency news website Coindesk. BlockFi’s long-term supporters are claimed to be devastated by the rescue, which might wipe them out.

FTX has inked a $250 million revolving credit facility agreement with BlockFi, and the firm’s shareholders are concerned that this might leave them with nothing in the event of FTX’s takeover of BlockFi.

FTX’s $250 million credit line to BlockFi provides Morgan Creek Digital managing partner Mark Yusko the benefit of purchasing BlockFi “at virtually zero price,” according to the leaked conversation. Existing shareholders of FTX stand to lose a lot if the company goes through with this plan.

In the event that FTX makes this purchase, it will also wipe out the business’s management and any workers who have stock options, in addition to any equity investors who have invested in the company before. The creators of BlockFi, according to Yusko, had a good reason for agreeing to the rules in advance, as shown in the leaked phone conversation transcripts.

It was the only one of numerous emergency finance proposals BlockFi received that didn’t require the rescuer to take a stake in the company’s customer assets. As a result, if BlockFi had declined to accept FTX’s offer, its depositors would have been left with a short period of time without compensation.

According to reports, Citigroup (C) and Akin Gump, two legal firms Celsius recruited for assistance on various solutions, have purportedly urged Celsius to file for bankruptcy.

Someone informed of this situation says that a Goldman Sachs representative is looking for commitments from Web3 crypto fund investors, funds that specialize in distressed assets, and conventional financial institutions with a lot of capital.

In order to complete this transaction, Goldman Sachs will need to find $2 billion in new capital from investors. In the case of a bankruptcy filing, the Celsius transaction would allow investors to acquire Celsius’ assets at significant discounts, according to the sources cited.

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