BlockFi Agrees to Refund $100K+ for CA Customers

  • BlockFi Agrees to Refund $100,000+ for California Customers – BlockFi, a bankrupt crypto lender, has agreed to provide refunds totaling over $100,000 to its California customers who continued to repay loans.
  • California Department of Financial Protection and Innovation Investigates – The Department of Financial Protection and Innovation (DFPI) of California revealed on Monday that BlockFi had authorized the distribution of $103,471 in refunds through its servicer to its clients in California.
  • Lenders Uninformed until November 22nd – DFPI mentioned that borrowers were not informed by November 22 that they could stop repaying their BlockFi loans “until further notice.”

Overview: BlockFi Agrees to Refund $100,000+ for California Customers

BlockFi, a bankrupt crypto lender, has agreed to provide refunds totaling over $100,000 to its California customers who continued to repay loans despite a trading suspension on November 10th of last year.

California Department of Financial Protection and Innovation Investigates

The Department of Financial Protection and Innovation (DFPI) of California revealed on Monday that BlockFi had authorized the distribution of $103,471 in refunds through its servicer to its clients in California. It was found that 111 people in California paid this amount between November 11th and November 22nd. BlockFi had filed a motion earlier requesting the court’s approval for retrieving these funds from it servicer.

DPFI Suspends Lending License & Revokes it Later

In November the DPFI commissioner suspended BlockFi’s lending license and revoked it a month later. After failing to inform and update their customers promptly about the bankruptcy proceedings, BlockFi has now agreed to comply with all relevant orders.

Lenders Uninformed until November 22nd

DFPI mentioned that borrowers were not informed by November 22 that they could stop repaying their BlockFi loans “until further notice.” This resulted in roughly $103,471 being paid unnecessarily by users during this period.

< h2 >Uncertain Timeline For Access To Funds
It remains uncertain when the users will have full access to their deposited funds as the bankruptcy proceedings are still underway at present.