The US Securities and Exchange Commission (SEC) recently revealed that BlockFi, a crypto lending platform, had reached a $50 million settlement with the SEC after the $100 million punishment.
BlockFi agreed to pay an additional $50 million penalty to 32 jurisdictions to settle all allegations related to its failure to register its crypto lending product offers and sales. Meanwhile, BlockFi noted that the settlement only applies to its BIA product for US customers, indicating that other BlockFi products such as Wallet, Personalized Yield, Loans, Credit Card, and Trading, as well as institutional offerings such as BlockFi Prime, are unaffected.
Current US consumers will continue to earn income in their existing accounts but will not be able to add further assets or open a new BIA, according to BlocFi, while non-US users will be unaffected. The crypto lending platform, on the other hand, intends to “file or confidentially submit a registration statement on Form S-1 with the SEC for the offering of BlockFi Yield (BY)”–making it the first crypto interest-bearing securities to be registered with the SEC.
BIA accounts will be changed to BY accounts after the registration procedure is complete, unless a client informs BlockFi differently, and fresh deposits and client sign-ups in the US will be enabled.
