California regulators temporarily revoked BlockFi's loan license and are investigating FTX

2022-11-12 10:25:11

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ChainCatcher News, the California Department of Financial Protection and Innovation (DFPI) announced that it will revoke the cryptocurrency lending platform BlockFi's license in the state for at least 30 days, in response to BlockFi's halt on withdrawals. Earlier, FTX US provided BlockFi with a $400 million line of credit.

DFPI stated, "DFPI is investigating whether BlockFi is complying with the laws under the commissioner's jurisdiction, including the California Financial Code. DFPI is also investigating FTX." ChainCatcher previously reported that yesterday, BlockFi announced it would suspend withdrawal services. CNBC crypto commentator reported that BlockFi had provided over $600 million in loans to FTX and Alameda. SBF attempted to repay in the past few days but failed due to the brewing of a bank run. (Source link)

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