Crypto exchange FTX is reportedly nearing a deal to purchase struggling crypto lender BlockFi for US$25mln, with the deal expected to be signed over the weekend.
Exactly a year ago, crypto lender BlockFi was valued at US$5bn.
BlockFi chief executive Zac Prince, however, refuted the rumours and tweeted: "I can 100% confirm that we aren't being sold for US$25mln. I encourage everyone to trust only details that you hear directly from @BlockFi. We will share more [with] you as soon as we can."
FTX had previously provided BlockFi with a US$250mln credit facility.
In mid-June, the lender announced it was firing about 20% of its workforce or about 170 employees.
BlockFi had claimed more than 1mln customers earlier this year, over US$10bn in assets and deposits, and distributed more than US$700mln in crypto rewards and interest.
Its fortunes quickly soured after it was reported to be a major creditor of Three Arrow Capital (3AC), which has since gone into liquidation.
Due to the bear market in cryptos intensifying in June, BlockFi was forced to liquidate 3AC's positions amounting to US$1.33bn.