The California Department of Financial Protection revoked the license of BlockFi Lending LLC due to violations of the financing law and imposed a fine of $175,000 💰📉

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The California Department of Financial Protection and Innovation (DFPI) revoked the license of BlockFi Lending LLC under the California Financing Law (CFL). The company agreed to the revocation and committed to cease violations.

DFPI found that BlockFi did not consider borrowers' ability to repay loans, accrued interest before fund disbursement, and failed to provide loan counseling. BlockFi filed for bankruptcy in 2022 after the collapse of the FTX cryptocurrency exchange and announced the recovery of assets for full reimbursement to clients.

DFPI imposed a fine of $175,000 for violations, but its payment was canceled in favor of consumer rights restoration, as the company is no longer operational.

This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.

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