BlockFi Investor Prepared for Heavy Losses as FTX Forged Deal

Investors in BlockFi Inc., the hobbled crypto lender that received a capital injection from digital-asset exchange FTX US, are prepared for some of their holdings to be wiped out.

The Private Shares Fund, a fund overseen by Liberty Street Advisors, marked down BlockFi’s warrants as worthless in its fund report at the end of June. On June 30, FTX offered a lifeline in the form of a $400 million revolving credit facility with an option to buy the company in a bid to save BlockFi after it was hit by recent liquidations.