BlockFi in the FTX Storm – Curve to the Rescue?

The war of conquest – The cryptocurrency ecosystem has just been violently shaken since fall fTx. Not surprisingly, this crisis spread to other actors of the ecosystem. Thus, the company BlockFi is once again in turmoil. A boon for Curve who is considering an acquisition.

BlockFi: collateral damage from FTX

BlockFi is a so-called centralized finance company (CeFi). He specializes in cryptocurrency-backed loans. At the same time, it also has a crypto bank card servicein collaboration with VISA.

Unfortunately, we recently learned that the platform is heavily exposed to FTX. So, it would appear that BlockFi had $400 million exposure to FTX products. A dramatic situation in the context of the collapse of FTX.

Faced with this situation, BlockFi has decided to suspend withdrawalstrapping user funds.

This is the second time this year that the company has been in such a situation. In fact, it was also largely influenced by the fall of Terra Luna and the cryptocurrency market crash that followed.

A situation all the more Dantesque knowing that it was FTX which at the time offered to bail out BlockFi in a $400 million deal.

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BlockFi’s CBs at a standstill

Shortly after the withdrawal block was announced, many users notified it on Twitter their BlockFi credit card it also stopped working.

BlockFi Credit Card Closing Testimonial – Source: Chirping.

The BlockFi teams subsequently formalized the pause of the cards in an email to their users:

“Dear cardholder. In light of recent BlockFi developments, which are beyond our control, we are writing to inform you that the purchasing privileges on your BlockFi Rewards Visa® Signature Card are suspended until further notice. Therefore, you will not be able to make purchases with your card.

Curve, Binance – everyone wants to buy CB BlockFi

Obviously, other companies and protocols see an opportunity in this dramatic situation. Indeed, the 87,000 users make BlockFi’s credit card program attractive.

Therefore, many companies are said to be in talks with BlockFi to acquire this program.

For example, we learned that the protocol Curve Finance would be interested in the acquisition or a partnership with Deserve. As a reminder, Deserve is the bank card handling partner for BlockFi.

According to information disclosed by the Curve spokesperson, the platform would like to continue offering rewards in cryptocurrencies to BlockFi bank card users. However, Curve doesn’t want to push these users towards a new centralized solution.

What sets our offering apart is that Curve is not a centralized exchange and has no commercial activity. We issue a credit card with cryptocurrency rewards and earn money from interchange revenue and interest; we are not trying to convert credit card customers into exchange customers. »

At the same time, rumors suggest so Coinbase and Binance US may also be interested in the acquisition The BlockFi CB service. One later denied by Coinbase and on which Binance has not yet pronounced itself. On the FTX side, the situation continues to escalate. Like this New revelations point to potential insider trading between Alameda Research and FTX.

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