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BlockFi seems to find a helping hand amidst all the chaos with the crypto firm following the FTX issue. Recently, the beleaguered crypto lender reported receiving an offer to acquire its over 87,000 credit card customers. It includes several prominent names in the list of interested candidates like leading US crypto exchange Coinbase. Curve, a payment card company, is also seeking a similar goal.
Curve is reported to be involved in continuous discussions with the crypto lender intending to acquire its credit card customers. BlockFi has suspended these credit cards since Friday.
Citing Curve spokesperson, it was reported that soon the day after suspension of credit cards the company reached out and started negotiations. The procedure is still going on with Deserve, a Banking as a Service (BaaS) company known to serve the card program of BlockFi.
Curve and Deserve negotiating the terms, the spokesperson said, yet the sale or partnership between both the entities would still be pending due to the due diligence result. Deserve is the primary contact point rather than BlockFi as Curve does not intend to purchase assets belonging to the crypto lender.
The fintech company assured to continue the existing successful ventures of BlockFi including its credit card program. It added that customers would be able to earn rewards in crypto assets.
In addition, citing Curve as a decentralized firm, he said the customers from the credit card program of BlockFi will not transfer to some exchange with centralized authorities.
Several reports were suggesting some other leading crypto firms were also seeking to acquire credit card customers of BlockFi. Although the statements were yet to be confirmed as no one confessed the claims.
Given the recent FTX collapse, BlockFi also caught the burns given its exposure to Bahamian crypto exchange. On Friday, the crypto lender went on to announce the halting of withdrawals over the platform.
On one hand, BlockFi restricted withdrawals for the customers while on the other, there were many users complaining over Twitter about asking for credit card payments. The social media platform was full of complaints as it cut-off people’s reach to their own funds and now asking for fees on top of it.
The company has its name within the crypto space for its services and top-notch offerings such as expert level services, secure and low-cost transactions, etc. Given the mishaps in the region lately from Terra (LUNA) collapse to recent FTX filing for bankruptcy, the crypto lender got affected. Its business had to pay the price for it and other companies are looking to take over some of its part.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
