According to court documents, over a hundred BlockFi borrowers continued to repay loans between Nov. 11 and Nov. 22, despite not being obligated to do so. The California Department of Financial Protection and Innovation revealed that at least 111 borrowers in California made around $103,471 in loan repayments in the specified period, despite the trading halt on Nov. 10 last year. The watchdog claimed that BlockFi failed to inform borrowers in a timely manner that they could stop repaying their loans until further notice.
BlockFi has agreed to refund more than $100,000 to its California customers who continued to repay loans. The refund will proceed if the motion is approved, with a hearing set for April 19. In the meantime, the DFPI stated that BlockFi has agreed to an “interim suspension” of its California Financing Law license while “the bankruptcy and revocation actions are pending.”
