Crypto Lender BlockFi Attracts Bid from Curve Amid Crypto Slump: Details

Curve, a payments company, is looking to buy more than 87,000 credit card customers, whose credit cards were suspended this November, from crypto lender BlockFi. Deserve, a Bank as a Service (BaaS) company, has been engaged to process access and negotiate this deal. Deserve is also responsible for servicing the BlockFi card system that was launched in July 2021. Curve’s proposal to buy this data from BlockFi comes at a time when the crypto industry is facing a meltdown due to the spectacular collapse of the FTX crypto exchange.

“Terms are still being negotiated between Curve and Deserve, but a sale or partnership, if agreed upon, is pending due diligence,” CoinTelegraph. reports a Curve spokesperson was quoted as saying.

As part of its initiative to drive crypto adoption, BlockFi credit cards allow their holders to earn 1.5 percent back in Bitcoin on every purchase made using the card.

The company, however, decided to halt user withdrawals citing the ongoing difficulties of FTX. BlockFi and FTX US announced this July that the companies have agreed to an agreement in which FTX US will provide BlockFi with a multimillion-dollar credit facility, which will also give FTX the right to acquire BlockFi.

After the ruling, several BlockFi card users complained on Twitter about their cards not working, prompting Curve to file a lawsuit.

If Curve’s acquisition deal comes through, we will continue to allow users to earn crypto rewards.

The company also said that users will not be redirected to another centrally managed exchange.

According to reports, Binance US and Coinbase were also trying to get a credit card for BlockFi.