California's Department of Financial Protection and Innovation issued a notice to suspend crypto lender BlockFi's license in the state for 30 days pending an investigation into the company's announcement that it had halted client withdrawals following the collapse of the FTX exchange.

"The DFPI is investigating BlockFi’s compliance with the laws within the Commissioner’s jurisdiction, including the California Financing Law," the agency said in a statement, adding that it is also investigating FTX.  The regulator said that BlockFi reported it had ceased offering loans in California. In February, BlockFi was ordered to stop and refrain from offering or selling unqualified, non-exempt securities in the form of BlockFi interest accounts in the state.