Ledn to Save BlockFi, Creditors Call for Three Arrows Liquidation, El Salvador Buys 80 BTC

Ledn to Save BlockFi, Creditors Call for Three Arrows Liquidation, El Salvador Buys 80 BTC

Earlier today, reports emerged that Ledn, a Canada-based lending network offered to help save BlockFi from its troubles. In other news, Deribit and Blockchain.com call for liquidation of 3 Arrows Capital, while El Salvador buys a new BTC chunk.

Ledn Offers a Helping Hand to BlockFi amid FTX’s Purchase Rumors

According to Bloomberg, the lending giant BlockFi has received a second purchase offer from its competitor, Canada-based Ledn. A Wu Blockchain tweet reads:

“Canada-based Ledn would lead a funding round of up to $400m and provide a $50m equity contribution to Blockfi. Other investors would include ParaFi Capital.”

At the moment, the troubled lending giant is already in contact with FTX, with earlier reports indicating an agreed deal of $25 million as a purchase settlement. Indeed, this was a massive discount from the $3 billion network valuation in 2021. The BlockFi CEO immediately responded to the news almost immediately saying

“Lots of market rumors out there – I can 100% confirm that we aren’t being sold for $25M. I encourage everyone to trust only details that you hear directly from @BlockFi. We will share more with you as soon as we can.”

However, based on Bloomberg’s information, Ledn would lead a funding round of $400 million and offer a $50 million contribution to the troubled lender. Adam Reeds, the Ledn CEO, recently said:

“Ledn is currently evaluating a number of opportunities to broaden its leadership in digital asset lending and beyond … At the moment, we cannot share any additional details.”  

Blockchain.com, Deribit Call for Three Arrows Liquidation

Recent reports indicate that Deribit and Blockchain.com are among the creditors of Three Arrows Capital, who called for the network’s liquidation. Earlier reports suggest that Blockchain.com and Deribit were top creditors of the hedge fund. A Blockchain.com spokesperson indicated that they are cooperating in the investigations into the hedge fund’s dealings. The spokesperson said: 

“We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law. We have filed for the immediate liquidation of all global assets of Three Arrows.” 

Deribit, another stakeholder, was affected with the developments connected to the Three Arrows Capital network. But, Deribit maintains that:

“Due to market developments, Deribit has a small number of accounts that have a net debt to us that we consider potentially distressed. Even in the event that none of this debt is repaid to us, we will remain financially healthy, and operations will not be impacted. We can confirm all customer funds are safe, and the full insurance fund will remain intact as is. Any potential losses will be covered by Deribit.”

Magic Square Raises $3 Million in Funding Round

Earlier today, Binance Labs announced a successful funding round for Magic Square. According to their blog, Binance Labs and Republic co-led this successful $3 million funding round. When tweeting about the fundraising, Crypto_Dealflow said:

“Community-driven multi-chain crypto app store @MagicSquareio raised $3M in a seed round led by @BinanceLabs and @_rcapital. @KCLabsOfficial, @GSR_io, @IQLabs_official, @GoGravity, and @AGBuildvcare among investors.”

According to Binance’s Blog, Magic Square “will use the proceeds to hyper-scale user acquisition growth, product development, and team expansion.”

The CEO of Magic Square, Andrey Nayman,

“The initial investment led by Binance Labs enables further expansion of our capabilities. It also validates our strong belief of making crypto available, accessible, and most importantly, user-friendly to everyone.”

When commenting about the funding round Mia Mai, Investment Director at Binance Labs, commented: 

“Binance Labs sees the potential in Magic Square, especially in its user-friendly designs and business model as a Web3 dapp store. We believe that the product suites that Magic Square supports, such as Magic ID, Magic Store, Magic Community, and Magic Affiliates, can potentially be driving forces of Web3 ecosystem mass adoption and implementation.”

El Salvador Buys 80 Bitcoin at $19k

Most recent reports indicate that when BTC was trading at just about $19k, El Salvador, the pro-Bitcoin country, brought about 80 pieces of the coin. Nayib Bukele, the president of El Salvador, tweeted earlier today, “El Salvador bought today 80 #BTC at $19,000 each! #Bitcoin is the future! Thank you for selling cheap.”

Many crypto enthusiasts applauded Nayib Bukele’s crypto move. For instance, when responding to Nayib Bukele, a crypto enthusiast Derek Ross said, “In a decade, we’ll tell tales of the legend of Nayib Bukele and El Salvador buying the #Bitcoin dip.”

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.