Cryptoknowmics
2022-02-14 12:30:55

BlockFi to Pay $100M In Settlement to SEC and State Regulators

Crypto lending platform BlockFi has reached a settlement of $100 million with the US Securities and Exchange Commission (SEC) and other state securities regulators who were investigating the company for selling unregistered securities. According to a Bloomberg report, out of the total settlement proceeds, $50 million will go to the SEC, while the rest will be distributed among several state regulators of New Jersey, Texas, Kentucky, Alabama and Vermont. Additionally, as part of the settlement, BlockFi will discontinue offering high interest-yielding accounts for its US customers. BlockFi offers high-interest rates for locking up cryptocurrencies such as Bitcoin, Ethereum into a user’s savings accounts. The company then loans those funds out at even higher rates. The firm then came under investigation from the SEC in November, 2021 over allegations that these BlockFi Interest Accounts which deliver yields up to 10% are unregistered securities. “We have been in productive ongoing dialogue with regulators at the federal and state level. We do not comment on market rumors,” a BlockFi spokesperson commented on the settlement. “We can confirm that clients’ assets are safeguarded on the BlockFi platform and BlockFi Interest Account clients will continue to earn crypto interest as they always have.” Scrutiny Over High-Yielding Crypto Product Besides BlockFi, other crypto lending platforms in the United States have also come under regu...

Get Crypto Newsletter
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.