BlockFi, a Bankrupt Cryptocurrency Lender, Will Refund Clients in California More Than $100,000

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Last Updated on March 28, 2023 by Bitfinsider

The California Department of Financial Protection and Innovation (DFPI) stated on Monday that BlockFi’s request to distribute $103,471 in refunds to its clients in that state has been approved.

The choice was made after a DFPI investigation determined that the now-bankrupt cryptocurrency lender “failed to provide timely notification” to borrowers that they could stop repaying their loans after the company had halted withdrawals on its platform. The decision is pending approval by a bankruptcy court. As a consequence, the California borrowers of BlockFi sent the lender’s servicer at least $103,471 in loan repayments.

On November 11, 2022, BlockFi halted customer withdrawals, deposits, and interest payments in response to the demise of cryptocurrency exchange FTX. BlockFi ultimately filed for Chapter 11 bankruptcy protection two weeks after being exposed to FTX.

The DFPI announced that a meeting regarding the refund request will occur on April 19.

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