Cryptocurrency giant FTX is finalizing a deal to acquire troubled lender BlockFi for just $25 million, according to a report published by CNBC.
The aforementioned sum is just a drop in the bucket compared to the $5 billion valuation the company sought a year ago. The prominent cryptocurrency lending company was also vocal about its plans to go public.
Last March, BlockFi landed a $350 million Series D funding round that boosted its valuation to $3 billion. The acquisition deal is expected to be inked by the end of this week, the report says.
The crypto lender had to liquidate Three Arrows Capital after the failed hedge fund failed to meet on an overcollateralized margin loan.
Earlier this month, the company dramatically reduced its workforce to cut costs.
On June 17, the New York Post reported that BlockFi was struggling to secure any funding after the downfall of Celsius.
In January, BlockFi agreed to pay a $100 million fine as part of its settlement with the U.S. Securities and Exchange Commission.
Update (6:47 p.m. UTC): BlockFi CEO Zac Prince claims that his firm is not being sold for $25 million in a recent tweet.
"I encourage everyone to trust only details that you hear directly from BlockFi. We will share more w you as soon as we can," Prince said.