Crypto Mufasa
Advertise
  • Crypto News
    • General News
    • Bitcoin News
    • Altcoin News
    • Ethereum News
  • NFT NEWS
  • Beginner Guides
  • Price Predictions
  • Crypto Prices
No Result
View All Result
  • Login
  • Register
  • Crypto News
    • General News
    • Bitcoin News
    • Altcoin News
    • Ethereum News
  • NFT NEWS
  • Beginner Guides
  • Price Predictions
  • Crypto Prices
No Result
View All Result
Crypto Mufasa
No Result
View All Result

Home » California Blocks BlockFi’s Lending License After Two-Year Review

California Blocks BlockFi’s Lending License After Two-Year Review

James by James
November 8, 2024
in General News
Reading Time: 2 mins read
A A
0
BlockFi License Revoked
Share on FacebookShare on Twitter
ADVERTISEMENT

In a recent regulatory move, the California Department of Financial Protection and Innovation (DFPI) has permanently revoked the lending license of BlockFi, two years post-bankruptcy. This decision comes following an extensive review and a settlement that prohibits BlockFi from engaging in what the DFPI deemed “unsafe practices.” The BlockFi license revoked situation serves as a warning to other financial firms.

License Revocation and Violations

The DFPI’s investigation into BlockFi found that the platform had violated key provisions of the California Financing Law (CFL). According to regulators, BlockFi’s lending practices fell short in several areas, notably by not evaluating borrowers’ repayment ability before loan approval, charging interest pre-disbursement, and inaccurately representing annual interest rates. Additionally, BlockFi failed to provide consumer credit counseling and didn’t report repayment histories to credit bureaus, further aggravating their position. Following the BlockFi license revoked action, many are questioning the future of digital lending platforms.

The DFPI clarified that this action was a necessary step to reinforce consumer protection laws in California. DFPI Commissioner Clothilde Hewlett emphasized the importance of balancing innovation with consumer safety, stating, “While we welcome financial innovation, companies must prioritize legal compliance and consumer protection.” With BlockFi license revoked, the DFPI aims to send a strong message.

Settlement Terms and Financial Penalties

As part of its agreement, BlockFi accepted the permanent license revocation and agreed to a $175,000 penalty. However, considering BlockFi’s ongoing bankruptcy proceedings, the DFPI waived the penalty payment to enable the platform to focus on repaying consumers.

You May AlsoLike

Polymarket Bets

March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

March 1, 2025
Ethereum’s Pectra Upgrade

3 Essential Insights from Recent Developer Call on Ethereum’s Pectra Upgrade

March 1, 2025

BlockFi’s Turbulent Journey Since FTX Collapse

BlockFi’s financial struggles and its eventual bankruptcy were significantly influenced by the collapse of FTX in late 2022. FTX’s bankruptcy left BlockFi with substantial debt obligations and created a challenging financial landscape. BlockFi’s loan exposure to FTX US totaled $275 million, while it had also extended a $400 million credit line to FTX. The recent BlockFi license revoked announcement only added to the company’s woes.

Related: BlockFi Moves Closer To Repaying Customers As Court Gives The Nod

Despite these setbacks, BlockFi attempted to return some crypto assets to users earlier this year through Coinbase in an interim distribution plan. However, the company shut down its web platform in May 2024, permanently ending user access to its services.

Future of Digital Lending Regulations

The case highlights a growing emphasis by regulators on protecting consumers in digital asset lending. California’s strict stance reflects a larger trend of increased scrutiny on crypto platforms to comply with traditional finance rules. The DFPI’s actions may set a precedent, underscoring the need for rigorous compliance as the digital finance landscape continues to evolve.

Share76Tweet48
ADVERTISEMENT
Previous Post

Alchemy Pay Grows US Presence with Four New State Licenses

Next Post

Dan Gallagher Considered as Potential SEC Chair Under Trump’s New Administration

James

James

James is a 33-year-old cryptocurrency enthusiast who has been involved in the industry since 2017. He has always been a keen follower of the crypto space and has experience in trading and mining cryptocurrencies. Since then, James has also written numerous articles on the subject and is passionate about sharing his knowledge and insights with others.

Related Posts

Polymarket Bets
General News

March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

March 1, 2025
Ethereum’s Pectra Upgrade
General News

3 Essential Insights from Recent Developer Call on Ethereum’s Pectra Upgrade

March 1, 2025
Cramer Suggests Saylor Should Plan for a Strategic Bitcoin Reserve
General News

Cramer Suggests Saylor Should Plan for a Strategic Bitcoin Reserve

February 28, 2025
MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana
Crypto Wallets

MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana

February 28, 2025
Bitcoin Bull Run Could Continue, says CryptoQuant CEO - Unless This Critical Threshold Is Breached
General News

Bitcoin Bull Run Could Continue, says CryptoQuant CEO – Unless This Critical Threshold Is Breached

February 28, 2025
Solana Futures Launch at CME Boosts Price Amid High Demand
General News

Solana Futures Launch at CME Boosts Price Amid High Demand

February 28, 2025
Next Post
Dan Gallagher Considered as Potential SEC Chair Under Trump’s New Administration

Dan Gallagher Considered as Potential SEC Chair Under Trump’s New Administration

Discussion about this post

Live Prices

You have not selected any currency to display

Stay Connected

You May Also Like

  • Bitcoin Halving Update: Bitwise CEO's $100k Price Projection Sparks Excitement

    Why the Bitcoin Halving Is Happening Sooner Than Anticipated

    239 shares
    Share 96 Tweet 60
  • MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana

    197 shares
    Share 79 Tweet 49
  • March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

    196 shares
    Share 78 Tweet 49
  • OKB Price Prediction 2023 – 2030: Will OKB reach $200?

    201 shares
    Share 80 Tweet 50
  • November’s Bitcoin Price Forecast: A Bullish Odyssey

    196 shares
    Share 78 Tweet 49
  • About Us
  • Contact Us
  • Work With Us
  • Privacy Policy
  • Terms Of Service

© 2022-2024 CryptoMufasa - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms Of Services and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • General News
  • Beginner Guides
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Price Predictions
  • Google News

© 2022-2024 CryptoMufasa - All Rights Reserved!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Don’t Miss Out on the Best in Crypto!

Stay ahead with a weekly digest of the top news and insights—no spam, no ads, just the essential updates delivered straight to your inbox. Subscribe now for valuable content you can trust!

johnsmith@example.com
subscribe to email

Never see this message again.