BlockFi, one of the largest cryptocurrency lenders, is preparing a $100 million settlement with the US securities regulator, the SEC. As part of the deal, BlockFi will stop offering new interest-bearing accounts to US customers. As Kriptokoin.com, we are giving the details…
Cryptocurrency company to pay $100 million
BlockFi is one of many companies taking action to provide bank-like services to crypto holders. It accepts cryptocurrency deposits for a set period of time and pays customers interest just like banks do with fiat deposits. However, banks pay around 0.1 percent for deposits, while similar companies, including BlockFi, Celsius and Gemini, pay anywhere from 3-18 percent.
These companies claim they can pay such high rates because institutional customers are willing to pay even more to access these cryptocurrencies. But BlockFi’s days seem to be coming to an end, at least in the US. According to sources with knowledge of the matter, the company has reached a $100 million settlement with the Securities and Exchange Commission (SEC) over accusations that it offers illegal products to US customers.
Sources said the deal could be announced next week, according to Bloomberg. In addition to the penalty, BlockFi will also have to stop offering crypto products to new customers in the US. However, existing customers can be retained. “We can confirm that customers’ assets are protected and that customers will continue to earn crypto interest,” the spokesperson said.
SEC is investigating other companies
It came just weeks after reports surfaced that he was investigating her. At the time, sources claimed that the SEC was investigating the entire area, but would initially focus on three. Gemini’s Carolyn Vadino said they voluntarily cooperated with the industry-wide investigation. But BlockFi has been in trouble with the authorities for several months now. Regulators in several states, including Kentucky, Alabama, and Texas, have ordered the company to cease operations.
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