A leaked investor call from Tuesday discloses that cryptocurrency investment firm Morgan Creek Digital is seeking $250 million from investors to acquire a majority interest in cryptocurrency lender BlockFi.

In response to Tuesday morning's statement by crypto exchange FTX that it would give a $250 million credit line to BlockFi, Morgan Creek devised a plan to hastily build an equity offer.

Morgan Creek refused to respond. Multiple venture capital funds are considering methods to provide equity financing to BlockFi, according to a source, as the lender fights to stay viable.

At stake is the ability of existing BlockFi shareholders, notably long-term investor Morgan Creek, to reclaim their investments.

On the leaked call, Morgan Creek Digital managing partner Mark Yusko stated, "I've been making calls all day."

According to Yusko, the credit line proposal from FTX featured a caveat for BlockFi's current shareholders: it provided FTX the chance to acquire BlockFi "at basically no cost." 

If FTX were to exercise this option, it would effectively eliminate all of BlockFi's existing equity stockholders, including management and workers with stock options, as well as all equity investors from earlier venture rounds.

Yusko stated on the leaked call, however, that BlockFi founders Zac Prince and Flori Marquez had a solid rationale for accepting the terms provisionally: BlockFi received other offers for emergency finance, but only FTX would not subordinate client assets to the rescuer.

If BlockFi had not partnered with FTX, its depositors would have had to wait behind the new lender to be refunded. In addition, there were no equity financing options available to BlockFi at that time. (Yusko did not name the other companies who presented bailout packages for BlockFi.)

The BlockFi CEO, Prince, announced through Twitter on June 21 that the company had signed an initial term sheet with FTX. Yusko informed investors on that day's leaked call that FTX and BlockFi were "about three days away" from reaching a definitive agreement.

A BlockFi spokeswoman told CoinDesk they are still discussing the parameters of the contract and are unable to offer any other information. "We expect to provide additional details about the parameters of the transaction at a later date," the spokeswoman said.

By press time, FTX had not responded to demands for comment.

According to Yusko on the leaked call, if FTX exercised its option after extending the credit line, only investors in the most senior tranche of the company's most recent fundraising would get anything back, and even that would be pennies on the dollar.