Binance US, Coinbase, Curve in Bidding War for BlockFi Credit Card Customers




By Jon Rice



/
November 12, 2022, 6:38 PM EST

Binance US and Coinbase are among bidders for the BlockFi credit card program and its associated customers, Blockworks has learned, while smaller fintech competitor Curve is also on the hunt for the roughly 87,500 BlockFi accounts.

BlockFi suspended withdrawals on Thursday, Nov. 12, saying it was unable to operate as usual due to “lack of clarity” on developments at FTX and Alameda Research, which have since initiated bankruptcy proceedings.

Multiple users on Twitter noted that their BlockFi cards have stopped working within the last 24 hours.

BlockFi itself is believed to have a hole in the balance sheet of around $800 million and is not believed to be heavily involved in negotiations to buy its card assets.

A source familiar with the matter told Blockworks that a deal is expected within 72 hours and that most of the ongoing negotiations regarding the acquisition of the BlockFi card assets are being conducted by fintech services company Deserve, which manages the BlockFi program. Evolve Bank & Trust of Florida is the issuing bank.

Centralized exchanges vs “traditional” fintech

Blockworks contacted BlockFi, Binance US and Coinbase without receiving comment.

A spokesperson for Curve in the United States explained that the company intends to continue offering crypto rewards, the signature feature of the BlockFi card, if Curve is successful in acquiring the customer base. On its website, Curve lists 10 tokens in which it offers crypto rewards.

In an emailed statement, they said that “what sets our offering apart is that Curve is not a centralized exchange and has no incentive to be one. We issue a crypto rewards credit card and earn money from the exchange income and interest; we are not trying to convert credit card customers to exchange customers.

“In fact, given what we’ve all seen this week, we will be actively encouraging our customers to self keeps their rewards. We want customers to earn their rewards in crypto and then move them directly into their own wallets.

BlockFi has had multiple setbacks this year. The company suffered more than most during the collapse of Three Arrows Capital and the associated collapses of credit rivals Celsius and Voyager, which undermined confidence in the crypto lending industry and sent BlockFi’s monthly revenue plummeting. around $48 million at the start of this year at just $15. million by August.

A detailed article by Blockworks about the collapse of BlockFi and its subsequent bailout by FTX – which has since filed for Chapter 11 bankruptcy protection – revealed insider claims about multiple issues with its tech stack. and a corporate culture focused on growth at the expense of sustainability.


Get the day’s top crypto news and insights delivered to your inbox each evening. Subscribe to Blockworks’ free newsletter now.


  • Jon Rice

    Jon Rice

    blockages

    Chief Editor

    Jon is the editor of Blockworks. Previously, he was an editor at Cointelegraph, where he also created and edited the magazine’s long-form publication. He is the co-founder of Crypto Briefing, which was launched in 2017. He is a strong advocate for diversity, inclusion, and equal opportunity in the blockchain industry, and a strong supporter of the potential for personal empowerment offered by the democratization of financial markets.

Leave a Comment