News

BlockFi Will Pay A $100M Fine, No Longer Open New High-Yield Bitcoin Accounts.

The alleged BlockFi $100 million in fines would be one of the most significant SEC penalties ever paid by a cryptocurrency business.

BlockFi

BlockFi, a cryptocurrency lending platform, has agreed to pay $100 million to settle ongoing investigations by the Securities and Exchange Commission and several state securities agencies.

According to a Bloomberg article based on unidentified sources, the company will likewise stop accepting new high-yield accounts from the majority of US consumers.

Madelyn McHugh, the company’s representative, said that the company would “not comment on market rumors.”. She added:

“We can confirm that clients’ assets are safeguarded on the BlockFi platform and BlockFi Interest Account clients will continue to earn crypto interest as they always have.”

The company’s business concept involves paying clients high interest rates in exchange for storing cryptocurrencies like Bitcoin, Ethereum, and Tether in savings accounts. The money are then lent out at even larger interest rates by the corporation. However, the SEC stated in November that these BlockFi Interest Accounts, which may earn 5 to 10%, are unlicensed securities.

SEC

The SEC became concerned after a group of five state securities regulators—from Alabama, Kentucky, New Jersey, Texas, and Vermont—issued show-cause or cease-and-desist orders requesting that the company stop providing services to their people.

Other crypto lenders, like Celsius, are being reviewed by state and federal officials. Coinbase canceled its intended high-yield Lend program in September after the SEC threatened to litigate.

If correct, the $100 million settlement would be one of the largest cryptocurrency disciplinary actions.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

Coincu News

Victor

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

1 hour ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

3 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

3 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

3 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

5 hours ago

This website uses cookies.