Crypto startup Ledn has reportedly approached rival lender BlockFi about a potential acquisition.
Ledn proposed to lead a funding injection of up to $400 million, with a $50 million equity contribution, according to a report by Bloomberg, citing anonymous sources.
If accepted, the deal would give Ledn a significant portion of BlockFi, per the report. The report stated that ParaFi Capital, the venture capital firm, would also invest.
BlockFi has seen its valuation collapse in recent weeks after it emerged that the company had significant exposure to Three Arrows Capital, the troubled hedge fund. BlockFi is already engaged in talks with exchange operator FTX, which The Block revealed is looking acquire the lender outright after handing it a $250 million credit facility in late June.