Voyager Digital, the crypto broker, has reportedly gotten loans from Alameda Research, which is a trading outfit formed by FTX founder Sam Bankman-Fried, a Bloomberg report said.
This will go toward more protection for customer assets while there’s volatility in the digital asset market.
Voyager has signed a non-binding term sheet for a $200 million credit facility from Alameda, which will come from a mix of cash and the USDC stablecoin.
The sheet will also come with a revolving line of credit for 15,000 bitcoins, which were worth around $285 million as of Saturday. This will be used as a way to keep client assets safe due to the current volatile conditions of the crypto market, Voyager has said.
The crypto sector has gone through one of its worst weeks on record, with crashing token prices and companies having a hard time staying above water.
In other news related to Bankman-Fried, he’s recently said the Federal Reserve is responsible for the crypto crashes, NPR wrote.
He said the Fed was the “core driver” of the downturn, as the Fed has been raising interest rates aggressively to help fight the inflation going on.
This has led to a “recalibration” of the expectation of risk with crypto.
Bankman-Fried said he knows how difficult what the Fed is trying to do is. He said the Fed is “caught between a rock and a hard place,” but added that the outlook for his business now is dependent on what the Fed does in the next few months.
Read More: FTX Founder Says Bitcoin Fails as Payments Network
Bankman-Fried has been opinionated on crypto issues, including saying recently that bitcoin’s inefficiency, environmental impact and lack of ability to scale make it a weak candidate for a payments network, PYMNTS wrote.
He said it wasn’t a payments network nor a scaling network, indicating the proof of work system wasn’t adequate to validate the “millions” of transactions that would be needed to make bitcoin a good system of payment.
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