BlockFi is being picked up for pennies on the dollar by FTX in a firesale set off by the crypto-winter

Three sources said the papers are expected to be signed by the end of the week. FTX will reportedly pay just $25 million, which is 99% below the company’s last private valuation. Another source said the deal was closer to $50 million, however. Pitchbook had last valued BlockFi at $4.8 Billion.

A source said the price can still shift before Friday, when the deal is expected to be finalized. It is also possible the acquisition could take multiple months to close. Alternately it was said participants were considering a deal involving options to buy BlockFi at a later date, pending regulatory approval.

One source said Friday is the end of the quarter, and that was motivating participants to come up with a deal and finalize it. The Wall Street Journal had reported previously that FTX was pursing an equity stake in BlockFi, while The Block had reported that an outright deal for the company was in air.

Both BlockFi and FTX refused comment on the matter. On Twitter BlockFi CEO Zac Prince called the $25 million number, “market rumors.”

The rumors come a week after FTX provided a $250 million emergency line of credit to BLockFi. FTX CEO Sam Bankman said the loan would help BlockFi “navigate the market from a position of strength.”

Numerous crypto lenders have suffered from liquidity issues since the crypto markets collapsed and counterparties failed to meet margin calls. Celsius and CoinFlex cited, “extreme market conditions,” when they paused customer withdrawals. Meanwhile Crypto hedge fund Three Arrows Capital has entered liquidation.

Another source said BlockFi “wiped out” equity investors, who are now writing off the value of their losses.