California revokes the lending license of the bankrupt crypto lending platform BlockFi

ChainCatcher news, according to Cointelegraph, the California Department of Financial Protection and Innovation (DFPI) has announced the permanent revocation of the lending license for the bankrupt cryptocurrency lending platform BlockFi. This decision was made two years after BlockFi filed for bankruptcy. The DFPI suspended BlockFi's license in November 2022 and subsequently conducted a comprehensive review of the company.

BlockFi has agreed to accept the license revocation and has committed to ceasing any illegal and unsafe business practices. The DFPI originally imposed a $175,000 fine on BlockFi, but considering the company is bankrupt and no longer operating, it decided to waive the fine to prioritize consumer protection.