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, according to an analysis of data compiled by Bloomberg. 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.