The Jersey City, New Jersey-based firm touts annual yields as high as 9.5 on its website- a figure that dwarfs the 0.06 average interest rate for bank savings accounts. Several of these states planned or issued cease-and-desist orders as part of their investigations throughout 2021.Ĭrypto lending in general has come under close SEC scrutiny in recent months. The SEC review focuses on whether the BlockFi accounts are akin to securities that should be registered with the regulator, according to a person with knowledge of the matter. The BlockFi Interest Accounts have also faced scrutiny from securities regulators in New Jersey, Texas, Kentucky, Alabama and Vermont over the offering. Securities and Exchange Commission over its popular product that pays customers high interest rates for lending out their digital tokens, a development. Those reviews are ongoing, and the firms have disputed the allegations.
The company has been under investigation since at least November 2021 over the lending product, which offers yields as high as 9.5%. Blockfi under SEC scrutiny over high yield lending program By Ali Raza Updated: 18 November 2021 Disclosure The US Securities and Exchange Commission (SEC) has been adamant that crypto lending. BlockFi Inc., another crypto lender, faces SEC scrutiny, Bloomberg reported last year, and both Celsius and BlockFi have been the subjects of earlier enforcement actions by state securities regulators. Crypto billionaire Bankman-Fried has stepped in to shore up BlockFis balance sheet - just one week after lending the brokerage Voyager Digital 485 million in cash and. Securities and Exchange Commission (SEC) $50 million and cease offering its high yield lending product as part of a settlement into an ongoing investigation into whether the product is a securities offering, according to a published report.īlockFi will also pay another $50 million to various state regulators, according to the report by Bloomberg, which first reported the news late Friday. FTXs Sam Bankman-Fried has provided a 250 million loan to bail out struggling crypto lender BlockFi, as digital asset companies continue to reel from the ongoing market crash.
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