Fintech company Dave has decided to distance itself from the troubled crypto exchange FTX by announcing plans to repurchase a $100 million convertible note from FTX Ventures. This move reflects the bankruptcy and legal challenges FTX is currently facing.
Dave will repurchase the note at a significant discount, for $71 million, pending approval from the bankruptcy court, with a hearing scheduled for January 25th.
Despite its past association with FTX, Dave continues to innovate and grow, known for its free checking accounts and cash advance services. The company has raised over $536.3 million across nine funding rounds.
In 2023, Dave secured $50 million through a debt issuance, emphasizing its financial flexibility and commitment to expanding its service offerings. Initially partnering with FTX in March 2022 to integrate cryptocurrency payments, Dave has since steered clear of the crypto space following FTX’s collapse, focusing instead on core financial services.
Dave has also introduced an AI-powered chatbot, DaveGPT, in December, enhancing its customer service capabilities. Meanwhile, the fallout from FTX’s collapse continues to affect the financial technology sector, with FTX liquidating assets to meet creditor demands and its founder, Sam Bankman-Fried, facing legal consequences for multiple fraud and conspiracy charges.