BlockFi faces regulatory heat, a sign of possible crypto lending regulations?
The crypto lending giant BlockFi is facing regulatory scrutiny from a handful of states in America ahead of a proposed public listing. BlockFi’s eventful 2021 has continued in the second half of the year as state regulators in the United States began to crack down on the company’s crypto interest-bearing accounts. The move likely marks another operational headache for the non-bank lender in a year of substantial fundraises and public listing plans interspaced by controversy and technical blunders.State regulators going after crypto interest-bearing accounts may also stand as a bellwether....
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The U.S. Securities and Exchange Commission (SEC) has charged cryptocurrency lending platform Blockfi in a first-of-its-kind action. The crypto lender has agreed to pay $100 million to settle the charges and pursue necessary registrations.
SEC Charges Crypto Lending Platform Blockfi
The U.S. Securities and Exchange Commission (SEC) announced Monday that crypto lending platform Blockfi has agreed to pay $100 million in penalties.
The SEC explained that “In this first-of-its-kind action,” it “charged Blockfi Lending LLC with failing to....
On Monday, the cryptocurrency lending company Blockfi announced that “market conditions” have had a “negative impact” on the firm’s business and it will be laying off “roughly 20%” of its staff. The message written by Blockfi co-founders Zac Prince and Flori Marquez follows a slew of well known crypto firms cutting back employees due to the bear market.
Blockfi to Lay off ‘Roughly 20%’ of Its Workforce
Digital currency values are not that hot these days, and the crypto economy slipped below the $1 trillion region on....
The sheer amount of money invested in the crypto space is causing regulatory dialog to occur at a frenetic pace as regulators struggle to keep pace. A number of states in the United States, including Kentucky, Texas, Alabama, Vermont, New Jersey and, most recently, New York have been cracking down on crypto lending. Depending on one’s perspective, these can amount to acts of collective desperation or a foretoken of things to come.Asked about the clampdown on crypto lending firms like BlockFi and Celsius, Firat Cengiz, senior lecturer in law at the University of Liverpool, told....
The crypto lender Blockfi detailed on Tuesday that the company secured a $250 million line of credit from FTX. Blockfi’s CEO Zac Prince announced on Twitter that the company will use the capital to bolster Blockfi’s “balance sheet and platform strength.”
Blockfi Obtains $250 Million Revolving Credit Line From FTX After Crypto Lending Firms Struggle With 2022’s Market Volatility
It’s been a rough year for crypto lenders due to digital assets losing significant value over the last few months. One lender, Celsius, has been accused of....
The state's financial regulator join its counterparts in New Jersey and Alabama in taking action against the crypto lending platform. The Texas State Securities Board has filed for a cease and desist order against crypto lending firm BlockFi for not offering a security licensed at the state or federal level.According to a Thursday filing, the state regulator will be holding a hearing related to allegations BlockFi is illegally funding its crypto lending operations and proprietary trading through the sale of unregistered securities. Should the judge accept that the platform’s accounts....