Block Fi bankruptcy - do I have to pay final bill - they will keep my crypto

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lawdude88

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Texas
I have a Block Fi credit card. They are owned by FTX. They froze their exchange and credit cards. They will be filing bankruptcy.

I will never get my money on their exchange or interest account back. I have a credit card with them. My final bill is $1500. Why should I pay my final bill when they are going to keep my money and crypto from my interest account? My credit score is above 800 and I also do not want this to destroy my credit.

I asked for their credit card terms and conditions multiple times.

I was able to find the terms and conditions. The underwriter is Evolve Bank and Trust. My guess is they will come after me if I do not pay my final bill as they are not going anywhere.




https://static.deserve.com/resources/CHA/BlockFi+Rewards+Visa+Signature+Card+CHA+APR+Range.pdf
 
lawdude88 said:
I will never get my money on their exchange or interest account back. I have a credit card with them. My final bill is $1500. Why should I pay my final bill when they are going to keep my money and crypto from my interest account?
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So...you have a credit card with a $1,500 balance. The issuer of that card is a financial entity of some sort where you also have an account with your money in it, but you didn't tell us how much money that is. Apparently this financial entity is in distress and you believe a bankruptcy is forthcoming.

Without having complete information, it seems you have answered your own question:

lawdude88 said:
I ... do not want this to destroy my credit.
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That said, what is the likelihood of this in distress financial entity reporting an unpaid balance - especially when the debtor has assets on deposit with the financial entity?

Also keep in mind that, if the unpaid balance is reported, you can submit a dispute based on the fact that the financial entity has money of yours.
 
lawdude88 said:
I have a Block Fi credit card. They are owned by FTX. They froze their exchange and credit cards. . . The underwriter is Evolve Bank and Trust. My guess is (Evolve) will come after me if I do not pay my final bill as they are not going anywhere.
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You are correct. You need to pay the bill. You do not owe the money to the "sponsor" of the card (Block Fi/FTX). You owe the money to the bank that issued the card. Even the servicing platform's website references this:

"Deserve is a trademark of Deserve, Inc.. . .The BlockFi Bitcoin Rewards Credit Card is issued by Evolve Bank & Trust, Member FDIC."

Des.
 
I only had $1000 worth of crypto assets. There are many that lost their life savings. If I paid $500, Block Fi would still have $1000 worth of my assets and I would still owe $1000 for my final credit card bill.

It sounds like Evolve Bank and Trust would still come after me for $1000. If I filed a dispute and stated Block Fi has $1000 of my assets, would I have any chance of getting it off my credit? Have there been any cases before where the underwriter decided not to come after the customer due to actions taken by the sponsor of a credit card? Do they not have any liability for the actions of the sponsor? FTX purchased Block Fi in May 2022. I signed up for the card December of 2021. Their assets used to be backed up through Gemini. When FTX purchased them in May, they of course backed up Block Fi's assets on FTX.

I did email the corporate office of Evolve Bank and Trust several days ago and still have not received a response.

Or is the best course of action just to chalk it up as a life lesson, pay the full bill, and keep my near perfect credit score?

Please help me clarify so I can make the most informed decision.

Thank You,
 
lawdude88 said:
Or is the best course of action just to chalk it up as a life lesson, pay the full bill, and keep my near perfect credit score?
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I'm a real son of a bitch when somebody screws me. But there comes a point where I have to recognize that there's no way of winning so I back off and get on with my life even if it costs me.

I would pay the bill and chalk it up to experience because there's no way you are getting money back from the crypto-scammers nor is your credit card debt going to be forgiven.

Crypto-currency is a house of cards. It's no surprise that people are losing their life savings left and right. I predicted it when I first read about it and made sure I warned my friends not to get involved in it.

Be thankful, in the grand scheme of things, you are getting off cheap.
 
lawdude88 said:
It sounds like Evolve Bank and Trust would still come after me for $1000. If I filed a dispute and stated Block Fi has $1000 of my assets, would I have any chance of getting it off my credit? Have there been any cases before where the underwriter decided not to come after the customer due to actions taken by the sponsor of a credit card? Do they not have any liability for the actions of the sponsor? FTX purchased Block Fi in May 2022. I signed up for the card December of 2021. Their assets used to be backed up through Gemini. When FTX purchased them in May, they of course backed up Block Fi's assets on FTX. I did email the corporate office of Evolve Bank and Trust several days ago and still have not received a response.
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I am not sure why you even think this is an issue. You did not use FTX to finance your credit card purchases, no more than I used Fry's Food Store to finance my purchases on my "Fry's" sponsored Visa card. You "borrowed" money from a real bank, not some pie in the sky Ponzi scheme (which is what the unregulated Crypto market is). Pay the credit card just like you would pay any other credit card.

As it relates to Crypto (or any other "get rich quick scheme") - go by the old adage: Only gamble what you can afford to lose. If you can't afford to lose, don't gamble.

Des.
 
despritfreya said:
I am not sure why you even think this is an issue. You did not use FTX to finance your credit card purchases, no more than I used Fry's Food Store to finance my purchases on my "Fry's" sponsored Visa card. You "borrowed" money from a real bank, not some pie in the sky Ponzi scheme (which is what the unregulated Crypto market is). Pay the credit card just like you would pay any other credit card.

As it relates to Crypto (or any other "get rich quick scheme") - go by the old adage: Only gamble what you can afford to lose. If you can't afford to lose, don't gamble.

Des.
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Fair enough....

However, there are class action lawsuits against celebrities that promoted and endorsed FTX. Many of these celebrities are likely going to lose millions from these lawsuits. They are not an employee of FTX.

The underwriter has no obligation to do due diligence on the company of the sponsor? If the sponsor was engaged in fraud and other illegal activities does that change anything? There is no liability there?
 
lawdude88 said:
Fair enough....

However, there are class action lawsuits against celebrities that promoted and endorsed FTX. Many of these celebrities are likely going to lose millions from these lawsuits. They are not an employee of FTX.
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No, the attorneys who filed the suit are saying that they could have some liability. That's a far cry from "likely going to lose millions".

The underwriter has no obligation to do due diligence on the company of the sponsor? If the sponsor was engaged in fraud and other illegal activities does that change anything? There is no liability there?
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YOU borrowed the money from the bank. YOU owe the money to the bank.
 
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