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Revocation of BlockFi's License by California DFPI

Friday. November 8 at 9:30 PM

1 min. read

The California Department of Financial Protection and Innovation (DFPI) has permanently revoked the license of BlockFi, a cryptocurrency lender that collapsed two years ago. The DFPI announced the license revocation on Nov. 7, following an examination that took place after BlockFi's license was suspended in November 2022. BlockFi agreed to the license revocation as part of a settlement with the DFPI, promising to cease violations and unsafe practices. The company was found to have violated the California Financing Law by not considering borrowers' ability to repay loans, charging interest prematurely, and failing to provide credit counseling and accurate loan disclosure documents. Despite being fined $175,000 for these violations, BlockFi's bankruptcy status led to the prioritization of consumer repayments over the fine payment. The revocation of BlockFi's license in California occurred after the company terminated its web platform in May, following its bankruptcy linked to FTX's collapse in November 2022.

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Celsius Enhances Creditor Returns with $127 Million Payout

Friday. November 29 at 2:00 AM

Celsius, a bankrupt crypto lender, has announced a $127 million payout to creditors, covering 60.4% of total claims. This second round of payments follows an earlier distribution in August, which returned $2.53 billion to 251,000 creditors. Creditors will receive payments in Bitcoin or US dollars based on eligibility, with Bitcoin payouts dependent on market value. Former CEO Alex Mashinsky faces trial in 2025 for fraud charges related to the company's collapse. Additionally, the article discusses rising stablecoin use in countries like Brazil and Nigeria, Coinbase's FOIA efforts, and Vancouver Mayor Ken Sim's belief in Bitcoin as a hedge against inflation. Metaplanet's inclusion in a major blockchain ETF and changes in SOPR and MVRV ratios are also highlighted. Disclaimer: The opinions expressed in the article are those of the writers and not CryptoSlate's. Readers are advised to conduct their own research before engaging in cryptocurrency activities.

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Innovative Use of Bitcoin in Real Estate Financing

Friday. November 22 at 11:00 PM

Newmarket Capital recently completed a groundbreaking loan transaction that merges traditional real estate financing with Bitcoin collateral. This innovative approach, as reported on CNBC's 'Squawk Box,' involves refinancing a multifamily property in Philadelphia with 20 Bitcoin included in the collateral. The fusion of assets aims to enhance lender security compared to conventional real estate-backed loans. The loan, spanning ten years, allows borrowers to repay without penalties, with Bitcoin held in escrow for at least four years. This unique structure benefits pension funds by offering a balanced risk-return profile and potential inflation hedge. The integration of Bitcoin in financial transactions signifies a shift in traditional finance's perception of cryptocurrencies. Additionally, major U.S. crypto companies are seeking advisory roles in shaping crypto policies. Despite market warnings and currency fluctuations, the use of Bitcoin in lending practices showcases its growing acceptance and potential impact on future financial transactions.

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Curve Finance Launches New Stablecoin to Enhance DeFi Ecosystem

Thursday. November 14 at 12:00 AM

Curve Finance has introduced a decentralized yield-bearing stablecoin called 'Savings-crvUSD' (scrvUSD) to provide low-risk returns for investors and support the crvUSD stablecoin. Users can create scrvUSD by depositing crvUSD into the scrvUSD module, which is backed by various digital assets like Ether and Wrapped Bitcoin. Funds in scrvUSD are kept secure in vaults, stabilizing borrowing rates for crvUSD. Curve Finance believes scrvUSD will improve the composability of its stable assets, offering new opportunities in the DeFi space. The platform's shift to crvUSD as the primary fee distribution asset has led to reduced token emissions for CRV. Additionally, a partnership with The Open Network aims to enhance interoperability between DeFi ecosystems. Collaboration includes developing Curve's CFMM to boost efficiency and reduce market volatility.

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