BlockFi has agreed to refund more than $100,000 to California customers
BlockFi, a defunct cryptocurrency lender, has agreed to reimburse more than $100,000 to Californian clients who had kept up loan repayments despite a trade suspension on November 10 of last year.
The Department of Financial Protection and Innovation (DFPI), California’s financial watchdog, reported on March 27 that their inquiry revealed at least 111 borrowers in California paid back about $103,471 in loan repayments between November 11 and November 22. BlockFi allegedly failed to “give timely warning to borrowers that they could stop repaying their BlockFi loans,” according to the agency.
According to the DFPI, borrowers were not informed that they could suspend making payments on their BlockFi Loans “until further notice” until Nov. 22. Documents show that on February 24, 2023, BlockFi submitted a motion to the bankruptcy court asking for permission to restore these payments to the debtors.
If the motion is granted, the refunds will be possible. A hearing is scheduled for April 19. The California Finance Law (CFL) license of BlockFi has been “interim suspended,” according to the DFPI, while “the bankruptcy and revocation actions are continuing.”
In the DFPI paperwork, it is stated that if the motion is approved, BlockFi “agrees to direct the Servicer to timely repay the Borrowers’ payments, including interest and late fees and all cash deposited following the November 10th platform stop.”
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