BlockFi to Pay $100 Million to the SEC for Offering Unregistered Securities -Breaking
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BlockFi (Decentralized Finance) has been ordered to settle $100 million with the Securities and Exchange Commission for a probe into unregistered securities.
BlockFi pays $100 Million to SEC
BlockFi’s lending product offers yields as high as 9.5% on , , and in its savings accounts. BlockFi will lend the crypto it holds at even higher rates in return.
The SEC however claimed that the yield services provided by BlockFi Interest accounts are not securities and was registering them as such in November 2021.
After three months, the New Jersey company was instructed to pay $50m for Securities and Exchange Commission charges and another $50m as part of a settlement agreement with the state regulators.
BlockFi also will no longer open new accounts to Americans for high-yield lending products. The settlement will not affect existing accounts.
New Jersey’s Securities Regulators in Texas, Kentucky, Alabama and Vermont have come under fire for the offer. Some states have issued a cease-and-desist order against BlockFi. Others plan to follow their lead.
Flipside
- SEC has been making significant progress over the 14-month-long case. The judge also ordered the unsealing of several documents.
Why you should care
Voyager Digital and Gemini Trust are just a few of the crypto lenders that have been targeted by the U.S.
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