On April 19, 2023, the court will consider the Department of Financial Protection and Innovation’s (DFPI) petition to order the crypto lending platform BlockFi to pay $103,471 to 111 California customers who continued to repay their loans within 11 days after the platform’s temporary suspension of activities in November 2022.
The company had failed to notify borrowers that they could suspend their payments until further notice.
BlockFi has requested permission from the bankruptcy court to return payments to borrowers and has agreed to suspend all collection of payments on loans, interest payments and late fees associated with any payments.
The company will refrain from disclosing delinquency or default of in-state customers to credit agencies and will not take “any action that could be detrimental to relevant ratings.”
