Bankrupt Crypto Lender BlockFi to Refund More Than $100K to California Clients

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Bankrupt crypto lender BlockFi has agreed to allow its servicer to hand back more than $100,000 in loan repayments to its California clients. LizKNapolitano reports

The decision, which is subject to a bankruptcy court’s approval, comes after a DFPI investigation found the now-bankrupt crypto lender “failed to provide timely notification” to borrowers that they could stop repaying their loans after the company had paused withdrawals on its platform. As a result, BlockFi’s California borrowers remitted at least $103,471 worth of loan repayments to the lender's servicer.

BlockFi froze client withdrawals and deposits to wallets and interest accounts on Nov. 11, 2022, following the collapse of crypto exchange FTX. The exposure to FTX eventually led to BlockFi’s filing for Chapter 11 bankruptcy protection two weeks later. A hearing concerning the refund request will take place on April 19, according to the DFPI announcement.

 

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BlockFi LizKNapolitano They need to turn their phones back on for their Credit Card service... (833) 426-0304 is the number they provide on their website... yet it doesn't work...

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