BlockFi Pays Over $100K in Refunds to CA Customers

• BlockFi, a bankrupt crypto lender, has agreed to provide refunds totaling over $100,000 to its California customers
• The Department of Financial Protection and Innovation (DFPI) of California revealed that BlockFi had authorized the distribution of $103,471 in refunds through its servicer
• BlockFi had failed to promptly notify its customers that they were no longer required to repay loans at the time of the company’s bankruptcy in November.

BlockFi Agrees to Provide Refunds for California Customers

BlockFi, a bankrupt crypto lender, has agreed to provide refunds totaling over $100,000 to its California customers who continued to repay loans despite a trading suspension on November 10th of last year. The Department of Financial Protection and Innovation (DFPI) of California revealed on Monday that BlockFi had authorized the distribution of $103,471 in refunds through its servicer to its clients in California.

Failure To Promptly Notify Customers Of Suspension

According to the DFPI, BlockFi had failed to promptly notify its customers that they were no longer required to repay loans at the time of the company’s bankruptcy in November. This has resulted in California users paying roughly $103,471 unnecessarily. DFPI mentioned that 111 people paid this amount between November 11th and November 22nd without any relevant notification from BlockFi until later.

Retrieval Of Funds From Servicer Requested By BlockFi

BlockFi had filed a motion earlier requesting for retrieval of these funds from its servicer. However, a decision on this matter will be made at a hearing on April 19th. In November, the DPFI commissioner suspended BlockFi’s lending license and revoked it a month later after which BlockFi agreed to comply with all relevant orders.

Reimbursement Of Refunds Started But Bankruptcy Proceedings Still Underway

BlockFi has begun reimbursing its users but since their bankruptcy proceedings are still underway it remains uncertain when users will have full access back into their deposited funds. The organization disclosed in its early bankruptcy filings that it has liabilities between $1 billion and $10 billion which includes payments owed not only customers but also significant lenders such as U.S SEC , FTX US , Arkara Trust etc .

Conclusion
In conclusion , although Blockfi has started reimbursing some money back , there is still much pending regarding their bankruptcy proceedings . It is yet unclear when customers will have full access back into their deposited funds .