New Decision In California For BlockFi With FTX Connection!

California Department of Financial Protection and Innovation, cryptocurrency While investigating the credit institution BlockFi, it reported that this company has suspended its credit license.

BlockFi Stopped Customer Withdrawals

According to a press release from the California Department of Financial Protection and Innovation, the move comes in response to the company stopping withdrawals.

The lender did this Thursday night, citing a lack of clarity regarding FTX. FTX US opened a $400 million line of credit to BlockFi earlier this year.

The Department of Financial Protection and Innovation said the suspension will last at least 30 days.

In its statement, the institution used the following statements:

“BlockFi announced on its Twitter account @BlockFi on November 10, 2022, that the company acknowledged that it ‘will not be able to do business as usual’ due to the ‘lack of clarity on the status of FTX.com, FTX US and Alameda’.

The Department of Financial Protection and Innovation is investigating BlockFi’s compliance with laws in the Delegate’s jurisdiction, including the California Finance Act. DFPI is also investigating FTX”

FTX, along with FTX US and Alameda, filed for bankruptcy on Friday after days of speculation that it might go bankrupt. FTX CEO Sam Bankman-Fried, who stepped down on Friday, had previously said that FTX had “liquidity” problems but assets were in “good” condition before filing for bankruptcy.

FTX’s filing for Chapter 11 bankruptcy shows that the company hopes to restructure and bounce back after going through the bankruptcy process.

“BlockFi has notified the Department of Financial Protection and Innovation that it has stopped offering loans in California and has asked customers not to deposit funds into BlockFi Wallet or interest accounts,” the California Department of Financial Protection and Innovation said in a statement.

*Not investment advice.