• BlockFi, a cryptocurrency lending platform, agreed to provide more than $100,000 in refunds to Californian customers affected by the firm’s collapse.
• The Department of Financial Protection and Innovation (DFPI) announced that BlockFi will reimburse Californian users who were not notified about the lender’s issues and kept repaying their loans.
• The crypto lender recently requested the servicer to return those loan repayments.
BlockFi Agrees To Reimburse Californians
BlockFi, a cryptocurrency lending platform recently agreed to provide more than $100,000 in refunds to Californian customers affected by the firm’s collapse. The Department of Financial Protection and Innovation (DFPI) announced that BlockFi will reimburse Californian users who were not notified about the lender’s issues and kept repaying their loans. These clients distributed at least $103,471 in 2022 to BlockFi’s servicer while they were unable to withdraw funds and collateral from the platform. A hearing scheduled for mid-April is set to shed light on this case.
What Led To BlockFi’s Collapse?
Last year was a turbulent time for Blockfi as it passed through numerous problems caused by events such as the Terra crash and FTX meltdown. The exchange was close to purchasing BlockFi during the summer with nearly half of its assets tied to FTX Group. As a result of these issues, it is no surprise that it filed for bankruptcy protection at the end of November 2020.
Repayment Of Loan Repayments
The crypto lender recently requested its servicer to return all loan repayments made by those affected individuals in California who were unaware of its issues yet continued making payments during this period. In total, this amounted up over $100k which has now been refunded back after an agreement between both parties had been made official earlier this week..
A hearing scheduled for mid-April is set shed light on details related to this case such as how much each customer will be reimbursed or if any further action needs taking place after said hearing has concluded successfully without any discrepancies or irregularities being found out against either party involved in this matter..
It is clear that last year was a difficult one for many digital asset firms including BlockFI which suffered from severe turbulence due largely in part from its exposure towards certain exchanges along with large portions of its assets being tied up within them too leading ultimately towards bankruptcy protection being sought out – however with recent developments it seems there may be hope yet for some form of justice restored back towards those customers who may have lost out in terms of money during these trying times..