Fintech company Curve has entered talks to buy out BlockFi, a crypto lending company, to acquire their 87,000-strong customer base after the latter’s credit cards were suspended last week.
Reports speculate that Curve may acquire BlockFi’s credit card programme while allowing users to earn crypto bonuses and perks without porting the platform “to yet another centrally-held exchange.”
Bengiza’s report states Coinbase and Binance US have aimed to buy BlockFi’s customer base for credit cards, just days after the BlockFi warned it would suspend withdrawals due to issues with the ongoing FTX crisis, triggering outrage on social media.
Users stated that BlockFi credit cards would still require payments.
The news comes after crypto firm FTX collapse in November due to a massive liquidity crunch, triggering a bank run on crypto assets.
Cryptocurrency giant Binance, the world’s largest platform, signed a non-binding letter of intent to acquire the embattled company, but the deal fell through due to Binance’s concerns over due diligence.
BlockFi Update
According to a recent statement, BlockFi said it was “deeply saddened to see the devastation that is cascading across” the industry, adding it was “working around the clock” to explore its options.
Citing the FTX incident, a BlockFi spokesperson said: “Given that FTX and its affiliates are now in bankruptcy, the most prudent decision for us, in the interest of all clients, is to continue to pause many of our platform activities for now”
They added: “The rumors that a majority of BlockFi assets are custodied at FTX are false. That said, we do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US.”
BlockFi reassured its customers it had “the necessary liquidity” and had reached out to advisors to tackle the crisis, citing Haynes and Boone as its primary counsel and BRG as financial advisors.
It concluded: “we will do our best to communicate through our official channels as often and transparently as possible going forward but expect these explorations may take time.”
