US Regulators Fined $ 100 Million On BlockFi Cryptocurrency Platform, Know Reasons

BlockFi Inc. A fine of $100 million (about Rs 755 crore) has been imposed by the Securities and Exchange Commission (SEC) and state regulators. BlockFi Inc. is a popular crypto platform. The company has been accused of illegally offering a product that promises customers a high interest rate in exchange for lending their digital tokens. The agency has also issued a statement regarding this fine on Monday.

The SEC has Statement I have said that BlockFi Inc. has sold accounts to US investors without registering them as securities on the SEC. The agreement, which was not followed, states that current BlockFi customers can continue to earn interest on their existing investments, but the company should not sell products to new US customers. The company has 60 days to comply with SEC regulations and is also seeking to register a new crypto-lending product that complies with the agency’s regulations.

SEC Chairman Gary Gensler said in the statement, “Today’s settlement [रेगुलेटर्स और कंपनी के बीच] clarifies that crypto markets must comply with time-tested securities laws.” He further concluded his statement by saying that “this [जुर्माना] Further reflects the Commission’s willingness to work with crypto platforms to determine how they can come into compliance with those laws.”

BlockFi, which did not accept or deny the regulators’ findings, will now pay the company $50 million (about Rs 377.14 crore) to the SEC and another $50 million to 32 states. This is the largest fine ever imposed by the SEC against a crypto company.

The SEC alleges that the New Jersey-based firm made a misleading statement on several website posts that stated that while institutional loans are usually over-collateralized (something pledging against the loan), most are not. Were.

of Bloomberg Quint Report Republican commissioner Hester Peirce said in a statement that he voted against the agreement, as the $100 million in total fines is more than the charges. They say that “rather than forcing them to be transparent about the retail cryptocurrency lending product, this agreement allows them to [क्रिप्टो प्लेटफॉर्म्स] Retail in the US may prevent customers from being offered.”

At the same time, the report further shares the statement of BlockFi CEO Zac Prince, in which he has said that the company will work with regulators to comply with the rules. “We want BlockFi Yield to be a new, SEC-registered crypto interest-bearing security that will allow customers to earn interest on their crypto assets,” he said.<!–