Crypto loan platform BlockFi is to pay a $100 million fine for its ongoing investigations with the US Securities and Exchange Commission (SEC) and several other securities regulators.
BlockFi Will Pay SEC $100 Million Fine
According to the Bloomberg report; BlockFi has agreed to pay the $100 million fine to the US Securities and Exchange Commission (SEC). In addition, according to the information obtained, BlockFi has to end the high-yield account application it offers to its US customers.
BlockFi spokesperson Madelyn McHugh made the following statements on the subject:
“Customers’ assets are protected on the BlockFi platform and BlockFi Interest Account customers are always We can confidently confirm that it will continue to earn crypto interest.
It should also be noted that if this fine is confirmed, it will be the largest amount of fine ever paid to the SEC by a cryptocurrency company.
Finally, BlockFi was working with a high-interest payment model in return for its customers to lock cryptocurrencies such as Bitcoin, Ethereum and Tether on the platform. The company would then loan these locked funds to other customers at higher interest rates.
In response, the SEC announced in November that these interest accounts of BlockFi were unregistered securities and took the process to court.
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