The Department of Financial Protection and Innovation (DFPI) in California <a href="https://dfpi.ca.gov/2022/11/11/dfpi-moves-to-suspend-blockfis-lending-license-confirms-blockfi-no-longer-lending-in-california/" target="_blank" rel="nofollow noopener">announced</a> yesterday that it was considering suspending <a href="https://www.cryptoknowmics.com/news/crypto-lender-blockfi-halts-withdrawals-in-wake-of-ftx-collapse">BlockFi's</a> lending license while the agency looked into the <a href="https://www.cryptoknowmics.com/news/cftc-strikes-order-against-fraudulent-cryptocurrency-arbitrage-company">cryptocurrency</a> lender.

https://twitter.com/CaliforniaDFPI/status/1591179707240050693
<h2>DFPI Action Due to BlockFi Halting Withdrawals</h2>
A DFPI news statement states that the action was taken in reaction to BlockFi stopping withdrawals. Due to a lack of transparency around <a href="https://www.cryptoknowmics.com/news/crypto-lender-blockfi-halts-withdrawals-in-wake-of-ftx-collapse">FTX</a>, the lender took this action on Thursday night. BlockFi received a $400 million line of financing earlier this year from the exchange's FTX US division. According to DFPI, the restriction will be in effect for at least 30 days.

BlockFi stated that it could not conduct business as usual because of the high degree of uncertainty on the future of FTX.com, FTX US, and Alameda in a notice published on November 10, 2022, through its Twitter account @BlockFi. The DFPI is looking into whether or not BlockFi is abiding by all applicable regulations, such as the California Financing Law. The Department of Financial Protection and Innovation stated that it is also looking at FTX.
<h2>Halt to Loans in California</h2>
According to a statement from the DFPI, BlockFi states to the Department of Financial Protection and Innovation that it has halted making loans in California and requests consumers not to deposit to the BlockFi Wallet or its interest accounts.

Following many days of rumors suggesting it could be bankrupt, FTX, FTX US, and Alameda declared bankruptcy Friday morning. <a href="https://www.cryptoknowmics.com/news/sbf-no-longer-a-billionaire-after-14-6b-overnight-wipe-out">Sam Bankman-Fried</a>, the CEO of FTX, who also announced his resignation on Friday, had earlier stated that FTX had liquidity problems but that its assets were acceptable before declaring bankruptcy.

Californian Financial Regulator DFPI Revokes BlockFi's Lending License

DFPI in California announced that it was considering suspending BlockFi's lending license while the agency looked into the cryptocurrency lender.

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Californian Financial Regulator DFPI Revokes BlockFi's Lending License

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