DFPI Announces Consent Order Requiring Crypto Platform to pay $50
On January 14, the DFPI announced a consent order requiring a crypto lending platform to pay $500,000 in penalties for alleged violations of the California Financing Law and the California Consumer Financial Protection Law. According to the regulator, the company offered crypto-backed consumer and commercial loans to California residents without obtaining a required finance lender license and without adequately considering borrowers’ ability to repay.
The consent order resolves allegations arising from DFPI’s examination of the platform’s crypto-backed lending program, which the Department alleges was offered to California residents between 2018 and 2022 through a website and mobile application. The company neither admitted nor…
