California Financial Regulator Suspends BlockFi’s License For At least 30 Days

In response to BlockFi’s action on shutting down customer withdrawals, the California Financial Conduct Authority announced that it will suspend licensing the platform for at least 30 days.

According to CoinDesk, the California Department of Financial Protection and Innovation (DFPI) has announced that it will suspend the licensing of crypto lending platform BlockFi in the state for at least 30 days.

DFPI is investigating whether BlockFi complies with local laws, including the California Finance Act. Meanwhile, DFPI is also investigating FTX.

According to previous news, BlockFi announced that it will suspend the withdrawal service, asking customers not to deposit money into BlockFi Wallet and Interest Account from now on.

The BlockFi founder on November 9 said all products are operating normally and that the company is a business entity independent of Sam Bankman-Fried’s company.

As updated in an earlier Coincu News article, on November 11, the FTX company filed for Chapter 11 bankruptcy in a US court.

Earlier this year, following the bankruptcy of Three Arrows Capital, BlockFi agreed to a potential acquisition deal with FTX, providing BlockFi with a $400 million line of credit.

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