by • BlockFi, a bankrupt crypto lender, has agreed to provide refunds totaling over $100,000 to its California customers.
• The Department of Financial Protection and Innovation (DFPI) of California revealed that BlockFi had authorized the distribution of $103,471 in refunds through its servicer.
• BlockFi had failed to promptly notify its customers that they were no longer required to repay loans at the time of the company’s bankruptcy.
BlockFi Agrees To Refund Over $100K To 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. 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.
Lack Of Notification To Customers
According to the DFPI, BlockFi had failed to promptly notify its customers that they were no longer required to repay loans at the time of the company’s bankruptcy in November. This has resulted in California users paying roughly $103,471 to BlockFi’s service provider unnecessarily. DFPI mentioned that, through an investigation, it was found that 111 people in California paid that amount between November 11th and November 22nd.
Suspension Of Lending License
In November, the DPFI commissioner suspended BlockFi’s lending license and revoked it a month later. The crypto lender has now agreed to comply with the relevant orders after failing to inform and update its customers promptly.
Absence Of Relevant Notification Until November 22
Absence Of Relevant Notification Until November 22The DFPI mentioned that borrowers were not informed by November 22 that they could stop repaying their BlockFi loans “until further notice.” BlockFi requested the bankruptcy court’s approval to return the payments to the borrowers in a motion filed on February 24th per documents.
Bankruptcy Proceedings Still Underway
The refunds processed so far are just a fraction of the total amount the crypto lender is indebted toof their lendersits userslenders instead .of Its usersBlockfi have begun reimbursing Its users , butItsbankruptcy proceedings are still underwayIt remains uncertain when Itusers will have full access remainsto their deposited funds., but..
