Mark Cuban-backed fintech Dave says no clients uncovered to FTX By Reuters

By Saeed Azhar and Manya Saini

NEW YORK (Reuters) -Entrepreneur Mark Cuban-backed Dave Inc stated on Thursday none of its clients had been uncovered to FTX and it has not launched any merchandise in partnership with the beleaguered cryptocurrency change.

FTX had invested $100 million within the fintech in March, by FTX ventures, to develop Dave’s digital property choices and the corporate had stated FTX US could be its unique associate for crypto.

“We now have not launched any merchandise in partnership with FTX and no clients are uncovered by Dave,” the corporate spokesperson stated in an announcement to Reuters.

“The observe issued to FTX just isn’t due for compensation till March 2026. No phrases contained within the observe set off any present obligation by Dave to repay previous to the maturity date.”

FTX filed for chapter safety in the US on Friday within the highest-profile crypto blowup thus far, after merchants pulled billions from the platform in three days and rival change Binance deserted a rescue deal.

The collapse has fanned fears about the way forward for the crypto trade after FTX outlined a “extreme liquidity disaster”. A number of regulators have since opened investigations and lawmakers have referred to as for clearer guidelines on how the trade operates.

Shares in Dave closed down practically 11% and have fallen 97% year-to-date.

Dave was valued at $4 billion final yr when it went public by a merger with a blank-check agency sponsored by funding agency Victory Park Capital. The corporate is valued at simply over $100 million on Thursday.

Excessive-flying fintechs have had a tumultuous yr on Wall Avenue as turmoil within the markets dampens investor sentiment, significantly round high-growth know-how shares.

Earlier this month, Dave reported that its web loss widened to $47.5 million within the third quarter ended Sept. 30, from $7.9 million, a yr earlier.