The California Department of Financial Protection and Innovation (DFPI) has permanently revoked the lending license of the bankrupt cryptocurrency lender BlockFi, following a settlement regarding unsafe practices. The revocation, announced on November 7, is the result of BlockFi's breaches of the California Financing Law, which included failing to assess borrowers' repayment abilities, charging interest before loan disbursement, and lacking proper consumer credit counseling. BlockFi was also noted for inaccurate disclosures of annual percentage rates. While a $175,000 fine for the violations was levied, it has been waived to prioritize consumer repayments due to the company's bankruptcy status. BlockFi ceased operations entirely, shutting down its web platform in May 2024, in the aftermath of significant financial issues stemming from its exposure to the collapsed FTX exchange. The company's bankruptcy process, initiated in November 2022, involved liabilities exceeding $1 billion and over 100,000 creditors.

Source 🔗