We talked to clients and potential buyers of Noble International, and this is what we learned

In recent days reports have emerged about Noble International, the Puerto Rico-based financial-services firm, and its search for a buyer. The Block has reached out to our industry sources, including potential buyers of the firm and its clients, and can corroborate reports that the firm has been shopping around for months after losing a number of big ticket clients. 

Desperately looking for a buyer

The firm, which provides technology to over-the-counter traders in cryptocurrency markets, has been desperately searching for a buyer, according to multiple people familiar with the firm's operations. One source, who told The Block he considered buying the firm, said Noble has been operating with a skeleton crew since Monday. 

"They are on a skeleton crew and only have so many days until they go into bankruptcy," the person said. 

Still, the firm could secure a buyer before becoming insolvent. And has been aiming for a multi-million dollar deal, according to a source. Bloomberg reported a range between $5 and $10 million.

Noble's troubles appear to be tied to the firm losing Tether as a client, according to people familiar with the situation. Tether, the entity behind the stable coin of the same name, was one of a number of big clients the bank has lost. 

"When a company loses its number one customer that's not good," the potential buyer said. 

Executive shakeup

An executive shakeup at the firm has played a role in its recent troubles, according to people familiar with the situation. Founding CEO John Betts has been replaced by Krishan Singh, who has been running the firm's operations in recent months. 

Singh, a Wall Street veteran, was previously an executive at Intercontinental Exchange, the parent company of the New York Stock Exchange. 

The change was not communicated to some of the firm's clients. One Chicago-based client of the bank told The Block:

"As a client we haven't been kept abreast. We haven't even gotten an email."

One source described tensions between upper-management, connected to the shakeup, as "toxic." And one review on Glassdoor noted the following: "Ruthless backstabbing management team shows zero transparency with the rest of the company."

New banks for Tether

It's not clear exactly why Tether ended its banking relationships with Noble. Still, one thing that is clear is that the firm has established other banking relationships with more than one firm, people familiar with the situation say. 

Krishan Singh did not respond to multiple messages seeking comment, nor did Noble Bank. We will update this article if either party responds to our inquiries. 

This post has been updated to include additional information about Krishan Singh.