03-28-2023 icon

BlockFi to offer more than $100K repayment to California customer

By Lucy Adegbe

Insolvent digital currency loan platform BlockFi has approved reimbursement of over $100,000 to California-based clients that persisted in refunding monetary credits even as exchange activities were suspended in the past November 10th.

In a Monday statement, California Monetary Protection and Innovation unit noted that its scrutiny found that more than 111 debtors residing in California reimbursed an estimated $103,471 between the 11th and 22nd of November.

The monetary watchdog alleged that the lending protocol BlockFi did not send out a prompt reminder to its debtors that they were to cease reimbursement of their BlockFi credits.

According to the unit, debtors did not get any notice until November 22nd that they were expected to cease reimbursement of BlockFi credits “until further notice.”

A February 24th court filing disclosed that the insolvent lender sought permission from the insolvency court to give back the reimbursed funds to debtors. The process would be executed if the permission is granted, with a court gathering slated to hold on April 19.

The insolvent loan solutions protocol had suspended customers’ withdrawal activities and demanded that all customers quit depositing to any of the protocol’s wallet or profit wallet on the 10th of November, referencing the lack of transparency surrounding the fall of FTX.