• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
BlockFi
Nexo

SEC Slaps BlockFi With $100 Million Fine – Is That Too Much?

Jet Encila by Jet Encila
3 months ago
in Crypto News
0

BlockFi may be forced to dig deep into its coffers and pay fines of up to $100 million.

According to credible grapevines, the U.S. Securities and Exchange Commission is looking to slap the crypto lending platform $50 million for providing unregistered securities.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Details have now emerged that an additional $50 million will be paid to five states where BlockFi is being investigated.

An ongoing inquiry into the company’s activities by the SEC led BlockFi to pay the hefty fee.

SEC Chairman Gary Gensler announced in early January that crypto exchanges will face increased scrutiny.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

SEC Smells Something Fishy

While the SEC probe into Ripple has been continuous since 2020, the SEC began placing BlockFi under the microscope in November of last year.

According to the SEC, BlockFi’s high yielding accounts constitute unregistered securities.

The crypto lending platform issued a statement reassuring investors that the SEC and state regulators were still engaged in discussions.

“We’ve had a good working relationship with federal and state regulators. Market rumors are not something we’re interested in discussing,” the update stated.

SEC Fee Costs BlockFi Arm And Leg

The penalties are among the harshest imposed against a cryptocurrency firm in the face of a U.S. crackdown on the industry.

Security regulators in New Jersey, Texas, Kentucky, Alabama and Vermont have questioned the offering of BlockFi Interest Accounts.

As part of their investigations, many of these states issued cease-and-desist orders throughout 2021.

BlockFi’s business model involves paying customers high interest rates in exchange for storing cryptocurrencies like Bitcoin, Tether and Ethereum in savings accounts.

Total crypto market cap at $1.853 trillion in the daily chart | Source: TradingView.com

Related Reading | Biden Administration Drafting Bitcoin Regulation, Why It Could Be Approved Soon

BlockFi representative, Madelyn McHugh, asserted that the New Jersey-based crypto company would not comment on market speculations in response to the development.

In spite of this, McHugh assured their customers that their funds were safe on the platform.

‘Mouth-Watering’ Offer

Crypto-lenders have come under fire for attracting tens of billions of dollars in deposits by promising returns that far surpass those offered by traditional savings accounts.

Celsius Network and Gemini Trust are two other firms whose high yields have made them popular with retail investors, and BlockFi is one of them.

BlockFi has responded to inquiries about the legitimacy of their “too good to be true” yield rates, which can sometimes reach 10%.

According to the company, because it lends money to institutions, it has the capacity to maintain the current interest rates.

Meanwhile, a lending product was put on hold in September after the SEC sent a warning to Coinbase Global Inc., the largest U.S. crypto exchange, that it would file charges if it moved forward with it.

Related Reading | The SEC Will Not Ban Crypto, That Would Be Up To Congress, Says Gary Gensler

Featured image from CryptoPotato, chart from TradingView.com
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Jet Encila

Jet Encila

Freelance writing is Jet's other cup of tea. When not on his computer, he unwinds with a cold bottle of beer and laughs with his son over cartoons. Other than that, he's just like everybody else who wants to be happy with their life.

Related Posts

Crypto.com

Crypto.com Steps Up To Boost Security And Privacy Studies Via Donations

1 day ago
Bitcoin

Bitcoin Pizza Day: Celebrating The $300-Million Pizza Order – And Other Fun Facts

1 day ago
Cyprus

Cyprus Drafts Regulatory Framework For Cryptocurrencies

1 day ago
South Korean Regulators Introduce New Licensing Frameworks To Protect Cryptocurrency Investors

South Korean Regulators Introduce New Frameworks To Protect Cryptocurrency Investors

1 day ago
Crypto

Now You Can Pay In Crypto And Buy A Tag Heuer Watch Online

2 days ago
Ripple

Ripple To Fund The Acceleration Of Global Carbon Markets; Dedicates $100M

2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.