{"id":32115,"date":"2024-11-08T22:00:10","date_gmt":"2024-11-08T19:00:10","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=32115"},"modified":"2024-11-08T18:08:16","modified_gmt":"2024-11-08T15:08:16","slug":"california-revokes-crypto-lending-company-blockfis-license","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/california-revokes-crypto-lending-company-blockfis-license\/","title":{"rendered":"California Revokes Crypto Lending Company BlockFi\u2019s License"},"content":{"rendered":"

California<\/strong> revoked the license of the bankrupt crypto lending company after a two-year investigation. On November 7, the California Department of Financial Protection and Innovation<\/strong> (DFPI<\/strong>) announced that the company\u2019s license was suspended in November 2022. After two years of audits, the license was permanently revoked.<\/p>\n

The company agreed to the license revocation and committed to discontinuing unsafe practices. DFPI<\/strong> reported that the company violated the California Financing Law<\/strong> (CFL<\/strong>). BlockFi<\/strong> gave loans without considering borrowers\u2019 repayment capacity and charged interest before the loans were disbursed. Additionally, the company failed to provide credit counseling and did not meet credit reporting obligations.<\/p>\n

\"BlockFi<\/p>\n

DFPI Commissioner Clothilde Hewlett<\/strong> said, “While we encourage innovation in our financial markets, companies must comply with laws and protect consumers to continue operating.”<\/p>\n

The bankrupt company will pay a $175,000 fine imposed by California<\/strong>, but the payment has been postponed to prioritize consumer repayments. In May 2024, the company shut down its web platform, and customers can no longer access it.<\/p>\n

\n

Might interest you: Who Could Replace Gary Gensler as SEC Chairman?<\/strong><\/a><\/em><\/p>\n

\n

The bankruptcy process began after Sam Bankman-Fried<\/strong>‘s FTX<\/strong> exchange collapsed. The company had significant exposure to FTX<\/strong> and its affiliates. BlockFi<\/strong> filed for bankruptcy due to a $400 million credit line with FTX US<\/strong>. Additionally, FTX<\/strong> was one of BlockFi<\/strong>‘s largest unsecured creditors.<\/p>\n

By 2024, the company is estimated to owe up to $10 billion to more than 100,000 creditors.<\/p>\n

\n

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our Telegram,\u00a0<\/strong><\/a>YouTube<\/strong><\/a>,\u00a0and\u00a0Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

California revoked the license of the bankrupt crypto lending company after a two-year investigation. On November 7, the California Department of Financial Protection and Innovation (DFPI) announced that the company\u2019s license was suspended in November 2022. After two years of audits, the license was permanently revoked. The company agreed to the license revocation and committed<\/p>\n","protected":false},"author":28,"featured_media":32116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,2],"tags":[6433,192,4197,2007,9347,9350,2005,9342,496,9349,9348],"class_list":["post-32115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-news","tag-bankruptcy","tag-blockchain","tag-blockfi","tag-california","tag-crypto-lending","tag-crypto-market-impact","tag-dfpi","tag-financial-regulation","tag-ftx","tag-lending-regulations","tag-license-revocation"],"yoast_head":"\nCalifornia Revokes Crypto Lending Company BlockFi\u2019s License - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/california-revokes-crypto-lending-company-blockfis-license\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Revokes Crypto Lending Company BlockFi\u2019s License - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"California revoked the license of the bankrupt crypto lending company after a two-year investigation. 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