– The California Department of Financial Protection and Innovation (DFPI) is investigating whether crypto-asset companies that suspended withdrawals and transfers have broken the law.
– The investigation focuses on “multiple companies” which offer interest-bearing crypto-asset accounts, along with service providers that “may not have adequately disclosed risks customers face when they deposit crypto-assets onto [lenders] platforms.”
– The DFPI has said in the past that crypto interest account providers arent governed by the same rules and protections as banks and credit unions.
– The DFPI has said that some crypto account providers were trading in unregistered securities: The state issued two cease and desist orders to Voyager and BlockFi.
– Voyager Digital has recently filed for Chapter 11 bankruptcy, which PYMNTS reported has shaken the confidence of even veteran crypto investors.
– The reports said that Voyager customers might not get all their money back, which has added to investors fears.