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BlockFi to provide refunds of over $100K to California clients

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At least 111 BlockFi borrowers continued to repay loans between November 11 and November 22, even though there was no need, according to court documents.

void crypto lender BlockFi has agreed to reimburse more than $100,000 to California guests who continued to pay off loans after the trading halt last November 10.

In a March 27 statement, the California Department of Financial Protection and Innovation said its disbursements had found that at least 111 borrowers in California made approximately $103,471 in loan disbursements between November 11 and November 22.

The fiscal watchdog claims that BlockFi failed to “provide timely announcements to borrowers that they may stop repaying their BlockFi loans. ”

The DFPI claims that borrowers were not notified until Nov. 22 that they can stop paying their BlockFi Loans “until further notice. ”

According to the documents, BlockFi sought authorization from the destruction court to return these payments to borrowers in a furor that was filed in court on February 24.

Refunds will be able to proceed if the furor is approved, with hail registered for April 19.

Meanwhile, the DFPI said BlockFi had agreed to a “temporary suspension” of its California Financing Law (CFL) license while “tampering and cancellation behavior is pending.” ”

however, including interest and late remittances and all finances paid after the November 10 platform break,” according to the DFPI document, “If this furor is granted, BlockFi agrees to direct Service Providers to return borrowers’ payments on time.

Unless decided by a bankruptcy court, the controller said BlockFi’s approval of the temporary suspension means it will continue to direct its agents to stop collecting disbursements for California guests on loans, interest payments and “not charge, charge, or charge any late delivery related to any payments.” including at maturity.”

BlockFi also agreed not to report to credit agencies that loans from California residents were overdue or defaulted on or after November 11, and would not take “any action that could impair the credit score of California residents on similar loans.” ”

According to the DFPI, Commissioner ClothildeV. Hewlett suspended BlockFi’s lending license for 30 days in November. 11 and moved to cancel BlockFi’s CFL license on December 1st. 15,.

BlockFi halted the customer recession and asked guests not to deposit into BlockFi holdalls or Interest Accounts on November 10, citing the lack of clarity surrounding the FTX collapse.

On November 28, BlockFi filed for a Chapter 11 destruction against the company and its eight accessories. BlockFi International filed for destruction with the Bermuda Supreme Court the same day.

BlockFi’s post to provide California clients with over $100K in refunds first appeared on BTC Wires.

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