The crypto loan Blockfi pays $ 100 million in fines at US regulators
The crypto loan Blockfi pays $ 100 million in fines at US regulators
- The punishments go back to the check of the high -interest account of Blockfi by the SEC last year
- The lender is prohibited from offering US citizens new products that resemble its high-interest earnings account
It is expected that the cryptocurrency credit platform Blockfi is $ 100 million of fines to the Securities and Exchange Commission (SEC) and other state supervisory authorities because of allegations that it has illegally offered a product with high interest income.
Blockfi will pay $ 50 million to the Sec and another $ 50 million to various government supervisory authorities. According to A, punishments could be announced next week Bloomberg-report who quoted with the matter. Specific state supervisory authorities were not mentioned.
According to the report, Blockfi will no longer be able to open new interest-bearing accounts for most US citizens. Blockworks tried to contact the CEO of Blockfi, Zac Prince, but did not receive an answer until the editorial deadline.
The punishments come because the US authorities continue to put crypto credit juries into the spotlight that are outside the scope of the country's finance.
The blockfi interest account enables users to give their cryptos for up to 9.25 % of an annual percentage return. A customer who borrowed USt worth $ 30,000 could expect a return of around $ 2,907 over a period of one year. In contrast, the average banking rate for interest rate giro accounts in the United States is around 0.03% to 0.06%, which corresponds to a return of only $ 9 or $ 18 for the same amount.
The comparison extends to the examination of the second to blockfi Last year that came to brawls about the high-interest, interestful crypto product.
New Jersey, Alabama, Kentucky, Vermont and Texas also took measures last year after concerns about whether the product of the lender was illegal securities, and at the same time accused the platform to offer customers only minimal protection.
"We are in a productive and continuous dialogue with the regulatory authorities at the federal and state level. We do not comment on market rumors," said Blockfi spokeswoman Madelyn Mchugh, as cited in the report. "We can confirm that customers' assets are protected on the Blockfi platform and that the customers of Blockfi interest accounts will continue to earn crypto interest rates, as they have always done."
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The article Crypto Lender Blockfi to Pay $ 100m in fines of US supervisory authorities is not a financial advice.