{"id":19215,"date":"2023-03-28T10:21:42","date_gmt":"2023-03-28T10:21:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bankrupt-blockfi-to-refund-over-100k-to-california-clients\/"},"modified":"2023-03-28T10:21:42","modified_gmt":"2023-03-28T10:21:42","slug":"bankrupt-blockfi-to-refund-over-100k-to-california-clients","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bankrupt-blockfi-to-refund-over-100k-to-california-clients\/","title":{"rendered":"Bankrupt BlockFi to refund over $100K to California clients"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1679994734226-e35ce100-0b45-49ae-a67f-58794507ec84-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1679994734226-e35ce100-0b45-49ae-a67f-58794507ec84-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1679994734226-e35ce100-0b45-49ae-a67f-58794507ec84-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/03\/1679994734226-e35ce100-0b45-49ae-a67f-58794507ec84-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>BlockFi filed for Chapter 11 bankruptcy on November 28.<\/li>\n<li>Some Califonia users continued to repay their loans between November 11 and November 22<\/li>\n<li>Users were not notified until November 22 that they could stop repaying their Loans \u201cuntil further notice.\u201d<\/li>\n<\/ul>\n<p>California\u2019s financial watchdog, the Department of Financial Protection and Innovation (DFPI), had previously suspended BlockFi\u2019s lending license for 30 days from November 11, 2022, before later revoking BlockFi\u2019s CFC license on December 15, 2022.<\/p>\n<p><a href=\"https:\/\/coinjournal.net\/news\/blockfi-is-bankrupt-where-did-it-all-go-wrong\/\">BlockFi halted client withdrawals on November 2022<\/a> and requested clients to deposit funds to BlockFi wallets or Interest Accounts for lack of clarity around the <a href=\"https:\/\/coinjournal.net\/news\/this-week-in-crypto-sbf-explained-ftxs-collapse-in-an-interview\/\">FTX collapse<\/a>. The crypto lender later voluntarily filed for Chapter 11 Bankruptcy on November 28, 2022, alongside its eight other subsidiaries.<\/p>\n<p>The DFPI claimed that BlockFi failed to <em>\u201cprovide timely notification to borrowers that they could stop repaying their BlockFi loans.\u201d<\/em> The watchdog claims that the crypto lender did not notify borrowers until November 2022 that they could stop repaying their BlockFi loans \u201cuntil further notice.\u201d<\/p>\n<h2>About 111 California BlockFi users to get refunded<\/h2>\n<p>According to a <a href=\"https:\/\/dfpi.ca.gov\/2023\/03\/27\/crypto-lender-blockfi-agrees-to-provide-more-than-100000-in-refunds-to-californians\/\">statement issued by DFPI<\/a> on March 27, investigations showed that at least 111 BlockFi borrowers from California continued paying their loans between November 11 and November 22, 2022. These borrowers paid back about $103,471 in loan repayments between the said periods.<\/p>\n<p>BlockFi <a href=\"https:\/\/dfpi.ca.gov\/wp-content\/uploads\/sites\/337\/2023\/03\/Admin.-Action-BlockFi-Lending-LLC-Stipulation.pdf?emrc=9d1578\">requested permission from the bankruptcy court<\/a> to return the payments to the borrowers in a motion filed on February 24, 2023. The crypto lender has agreed to refund more than $100,000 to the California customers that continued repaying their crypto loans even after trading halted operations on November 10, 2022.<\/p>\n<p>The hearing for the request to refund the customers is scheduled for April 19, 2023. The refunds will go ahead if the motion is approved by the bankruptcy court.<\/p>\n<p>In the meantime, BlockFi has agreed to an \u201cinterim suspension\u201d of its California Financing Law (CFL) license while \u201cthe bankruptcy and revocation actions are pending.\u201d<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/bankrupt-blockfi-to-refund-over-100k-to-california-clients\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) BlockFi filed for Chapter 11 bankruptcy on November 28. Some Califonia users continued to repay their loans between November 11 and November 22 Users were not notified until November 22 that they could stop repaying their Loans \u201cuntil further notice.\u201d California\u2019s financial watchdog, [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":19216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/19215"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=19215"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/19215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/19216"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=19215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=19215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=19215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}