Bitcoin News Today: IDC Threatens Lawsuit Over Curve's Undervalued Lloyds Deal as Crypto Plummets

Lloyds Banking Group's controversial $139 million acquisition of digital wallet provider Curve has ignited a firestorm among investors, with the deal's valuation sparking legal threats and exacerbating broader market jitters. The UK's largest high-street bank agreed to acquire Curve-a platform with over six million users-for £120 million ($139 million), according to sources briefed on the transaction. However, the price tag has drawn sharp criticism from Curve's largest external investor, IDC Ventures, which holds a 12% stake and claims the offer undervalues the company by a significant margin. IDC Ventures, represented by law firm Quinn Emanuel, has threatened legal action, accusing Curve's management of poor governance and opaque handling of the sale process. "It is a matter of real surprise to shareholders that Lloyds would proceed with a transaction IDC believes is not in the best interests of the company or its shareholders," the investor stated. Curve's board, meanwhile, defended the deal as the "best available path forward," acknowledging the valuation fell short of expectations but emphasizing the need for financial stability according to the board's statement.

The acquisition comes amid a broader crypto market slump, with the sector reeling from record liquidations. Over the past 24 hours, nearly $2 billion in leveraged positions were wiped out, according to Coinglass data, as Bitcoin (BTC) and ether (ETH) plummeted to multi-month lows. The collapse has been fueled by a perfect storm of macroeconomic uncertainty, including shifting expectations around Federal Reserve rate cuts and a surge in Japanese bond yields, which have tightened global liquidity according to analysis.

Bitcoin's price dropped below $85,000 for the first time since April, erasing all year-to-date gains and trading at a 12% deficit for 2025. Ether followed suit, falling below $2,750-a 19% decline from its annual peak. The selloff has triggered a cascading effect, with major altcoins like XRP, Solana, and Dogecoin also tumbling between 8-15% according to market data. Analysts warn that the market's fragility is compounded by thin liquidity and excessive leverage, with open interest in perpetual futures contracts collapsing 35% since October's peak.

The Curve acquisition has further rattled sentiment. Curve's management admitted in September that Lloyds' offer was lower than previous fundraising valuations, which had reached $289 million after a £37 million funding round led by Hanco Ventures. IDC Ventures' opposition highlights deepening governance tensions, including a recent failed attempt to remove Curve's chair, Lord Stanley Fink, and CEO Shachar Bialick according to internal reports. These leadership disputes have eroded investor confidence, with Curve's shares trading at a steep discount to their historical value.

Meanwhile, the crypto market's freefall has triggered systemic risks. MicroStrategy's Bitcoin holdings, now approaching the company's estimated break-even price of $74,400, have become a focal point for equity investors reassessing exposure. The firm faces potential index-related risks in early 2026, including passive outflows if its stock is removed from key benchmarks-a scenario that could amplify downward pressure on Bitcoin according to financial analysts.

As the market grapples with its worst monthly drawdown since the 2022 crypto winter, experts caution that stability remains elusive. One analyst noted that Bitcoin is trading as a liquidity asset, first and a macro hedge second, saying the market's hypersensitivity to positioning shifts and sentiment swings. With leverage flushed out but not fully rebuilt, and spot books skewed toward sellers, the path to recovery hinges on a fresh macro or regulatory catalyst-a scenario that appears distant amid ongoing volatility.