BlockFi will be required to pay $100M as part of its resolution with the SEC and the North American Securities Administrators Association
The company is portraying the deal as a victory for bringing regulatory certainty. BlockFi will be compelled to pay the Securities and Exchange Commission and the North American Securities Administrators Association $100 million as part of its settlement with the Securities and Exchange Commission and the North American Securities Administrators Association. The Securities and Exchange Commission and 32 states reached a $100 million settlement with BlockFi. The SEC receives half of the settlement, while the states get the other half. This is the SEC’s biggest punishment against the digital asset sector.
According to the SEC’s announcement, BlockFi will pay $50 million of the penalty directly to the SEC and the remaining $50 million in penalties to 32 US states to resolve comparable accusations. Since its establishment, project has garnered $450 million in capital from investors. Its most recent investment was a $350 million Series D in March, headed by Bain Capital Ventures, DST Global, Pomp Investments, and Tiger Global.
“From the day we started BlockFi, we have always known that strong engagement with regulators would be critical for the adoption of financial services powered by cryptocurrencies,” BlockFi founder and CEO Zac Prince said in a statement. “Today’s milestone is yet another example of our pioneering efforts in securing regulatory clarity for the broader industry and our clients, just as we did for our first product – the crypto-backed loan.”
BlockFi has previously encountered regulatory pressure from state authorities. BlockFi was issued a stop and desist order by the New Jersey Bureau of Securities in July for allegedly financing interest-bearing accounts with unregistered securities. Only days later, Alabama authorities charged the company with breaking securities laws and issued a Show Cause Order to the business.
