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As part of a settlement arrangement, BlockFi agreed to pay a $100 million penalty for selling its crypto-lending product, BlockFi Yield, without registering it as a security. In addition to the penalty, BlockFi intends to register BlockFi Yield as a security.
BlockFi got into a tremendous amount of trouble with the SEC and more than 30 state regulators.
The crypto lender, which didn’t admit or deny wrongdoing, had been accused of illegally offering a product that pays customers high interest rates to lend out their digital tokens. The company sold the accounts to U.S. investors without registering them as securities, the Securities and Exchange Commission had said.
BlockFi Inc., a popular crypto platform, agreed to pay $100 million to the Securities and Exchange Commission and state regulators over allegations it illegally offered a product that pays customers high interest rates to lend out their digital tokens.
Crypto lender BlockFi to pay $100 mn penalty for violating securities law