California moves to suspend BlockFi’s lending license in state
Quick Take
- California’s Department of Financial Protection and Innovation issued a notice to suspend crypto lender BlockFi’s license in the state for 30 days pending an investigation.
- The regulator says it’s also investigating FTX.
California's Department of Financial Protection and Innovation issued a notice to suspend crypto lender BlockFi's license in the state for 30 days pending an investigation into the company's announcement that it had halted client withdrawals following the collapse of the FTX exchange.
"The DFPI is investigating BlockFi’s compliance with the laws within the Commissioner’s jurisdiction, including the California Financing Law," the agency said in a statement, adding that it is also investigating FTX.
The regulator said that BlockFi reported it had ceased offering loans in California. In February, BlockFi was ordered to stop and refrain from offering or selling unqualified, non-exempt securities in the form of Blockfi interest accounts in the state.
BlockFi said Thursday that it was "shocked" by news reports about the troubled FTX and that it would limit platform activity and pause client withdrawals “as is allowed under our Terms.”
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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