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BlockFi Suspends Purchasing Privileges Effective 11/11

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FinStar
Moderator Emeritus

BlockFi Suspends Purchasing Privileges Effective 11/11

Not sure if anyone has been following some of the recent developments surrounding the BlockFi situation associated with FTX's recent filing for CH 11 Bankruptcy, but it appears that California's Finance Regulatory agency just revoked BlockFi's lending license.

 

https://www.coindesk.com/policy/2022/11/11/california-finance-regulator-revokes-blockfi-lending-lice...


I had wondered how long it would be before some of these FinTechs would experience a bit of a crunch given the recent market conditions. I just received the following email from BlockFi:

8B8F9A79-CBF1-4405-9070-106FBB0DD90F.jpeg

 

This topic is mainly an informative one to keep folks in the loop as recent developments unfold. This isn't meant for bashing or trolling.

Message 1 of 79
78 REPLIES 78
RootDet
Frequent Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11

Honestly, I saw this coming. On reddit, tons of people were threatening to max out the accounts and not pay the credit card. they believe since blockfi suspended transactions and is going bankrupt, they get free money. Sad how uninformed people are about how credit works when lenders go bankrupt. but in this case, the lender did not go bankrupt, it's the partner where rewards are deposited.

 

I am going to ride it out and hope for one of two things

A) Deserve creates their own crypto back card and converts us

B) This ends up being another fintech card that closes down, but only after 2 years. I forget which card here was like that when they ran out of money. This at least gives me account age. 

 

So i am sitting back and watching the show. I kept no money there and emptied out my rewards when the market was rumbling. 

 

 

 




Message 2 of 79
12njoy
Super Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11

@FinStar 

 

I knew it was just a matter of time with the flood of emails with updates.  I got my notice.  I guess no harm, no foul since it was a SP.  I carried a zero balance so I'll chalk it up as interesting 


Profile Worth 1.4M+ (Formerly known as: Credit is my hobby/TCL objective)
___________ 12Njoy
FICO - EX 810; EQ 797; TU 804 I'm climbing back to 800+
Message 3 of 79
12njoy
Super Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11


@RootDet wrote:

Honestly, I saw this coming. On reddit, tons of people were threatening to max out the accounts and not pay the credit card. they believe since blockfi suspended transactions and is going bankrupt, they get free money. Sad how uninformed people are about how credit works when lenders go bankrupt. but in this case, the lender did not go bankrupt, it's the partner where rewards are deposited.

 

I am going to ride it out and hope for one of two things

A) Deserve creates their own crypto back card and converts us

B) This ends up being another fintech card that closes down, but only after 2 years. I forget which card here was like that when they ran out of money. This at least gives me account age. 

 

So i am sitting back and watching the show. I kept no money there and emptied out my rewards when the market was rumbling. 

 

 


I remember I had one of those cards but can't remember the name.  I know it was picked up by comenity and layed dormant for about a year or so before they closed it.


Profile Worth 1.4M+ (Formerly known as: Credit is my hobby/TCL objective)
___________ 12Njoy
FICO - EX 810; EQ 797; TU 804 I'm climbing back to 800+
Message 4 of 79
FinStar
Moderator Emeritus

Re: BlockFi Suspends Purchasing Privileges Effective 11/11

It appears the suspension by the regulatory agency is set for 30 days while they investigate, so we shall see what happens from that. I guess I'll switch to Gemini and a couple others in the interim ☺️ Thankfully, I had already cashed out my rewards from BlockFi a few months ago since things started to be on shaky ground.

 

It was a decent card when launched and maybe it can still have a future...or not 🤷‍♂️ Heck, the X1 card has experienced some teething problems as well especially with recent CLDs from what I've seen.

Message 5 of 79
12njoy
Super Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11

Wow.  I suspect more to follow.


Profile Worth 1.4M+ (Formerly known as: Credit is my hobby/TCL objective)
___________ 12Njoy
FICO - EX 810; EQ 797; TU 804 I'm climbing back to 800+
Message 6 of 79
RootDet
Frequent Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11

@FinStar 

 

For me, i think the biggest question is what Deserve/Evolve Bank wishes to do with us cardholders. If blockfi goes under, we are up for grabs for deserve to do as they wish. we just have to remember the lender is not struggling, so that gives hope. 




Message 7 of 79
FinStar
Moderator Emeritus

Re: BlockFi Suspends Purchasing Privileges Effective 11/11


@12njoy wrote:

@RootDet wrote:

Honestly, I saw this coming. On reddit, tons of people were threatening to max out the accounts and not pay the credit card. they believe since blockfi suspended transactions and is going bankrupt, they get free money. Sad how uninformed people are about how credit works when lenders go bankrupt. but in this case, the lender did not go bankrupt, it's the partner where rewards are deposited.

 

I am going to ride it out and hope for one of two things

A) Deserve creates their own crypto back card and converts us

B) This ends up being another fintech card that closes down, but only after 2 years. I forget which card here was like that when they ran out of money. This at least gives me account age. 

 

So i am sitting back and watching the show. I kept no money there and emptied out my rewards when the market was rumbling. 

 

 


I remember I had one of those cards but can't remember the name.  I know it was picked up by comenity and layed dormant for about a year or so before they closed it.


Are you referring to good ole Blispay? 😂. If so, ah yes...good times while it lasted.

Message 8 of 79
12njoy
Super Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11


@RootDet wrote:

@FinStar 

 

For me, i think the biggest question is what Deserve/Evolve Bank wishes to do with us cardholders. If blockfi goes under, we are up for grabs for deserve to do as they wish. we just have to remember the lender is not struggling, so that gives hope. 


That's true.  Aren't they funding another card?  I know I have something else with them.  Is it upgrade?  I've see their name somewhere else in my list of cards.


Profile Worth 1.4M+ (Formerly known as: Credit is my hobby/TCL objective)
___________ 12Njoy
FICO - EX 810; EQ 797; TU 804 I'm climbing back to 800+
Message 9 of 79
RootDet
Frequent Contributor

Re: BlockFi Suspends Purchasing Privileges Effective 11/11

M1 card, Sallie Mae CC, a student card are the top ones. they have various cobranded, whitelabel and affinity cards. 




Message 10 of 79
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