The SEC has waived $30 million in claims to make it easier for BlockFi to reimburse its customers.
The U.S. Securities and Exchange Commission (SEC) has agreed to waive a $30 million fine so BlockFi can invest in its clients, according to a June 22 court filing. The stated amount was calculated as the remainder of the $50 million penalty BlockFi’s crypto loan product owed to the SEC for covering some charges. The platform accepted the settlement in February 2022 but filed for bankruptcy in November following the collapse of FTX.
$30 Million Fine Shelved for Now
The SEC has argued in its ongoing Chapter 11 bankruptcy lawsuit that its claims should be counted as part of general unsecured receivables. However, in order to maximize the amount that can be distributed to investors and to avoid delay in such distribution, it has agreed to withhold the payment.
According to the agreement reached on June 22, Sasha Hodder, founder of Hodder Law, a firm specializing in crypto law, said that the SEC was among the first creditors to queue up to receive payments from BlockFi.
48930
