Texas and Alabama Regulators Crackdown on Blockfi’s Interest Bearing Account ...
Fresh off the heels of Blockfi’s issues with the New Jersey Bureau of Securities, the company is now having problems in the state of Alabama. The director of the Alabama Securities Commission (ASC), Joseph Borg, explained on July 21 that he issued a show cause to the firm. Borg wants Blockfi to explain why the ASC should not copy New Jersey’s cease and desist as Alabama regulators also seem to believe they might be selling unregistered securities. Blockfi has received another order from the Texas State Securities (TSS) Board for the same reason. Alabama....
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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....
BlockFi continues rejecting securities regulators’ allegations that its Interest Accounts are unregistered securities. The state of Alabama has become the second state in the United States to raise concerns over BlockFi, a major cryptocurrency lending platform.The Alabama Securities Commission (ASC) has issued a show-cause order to New Jersey-based company BlockFi, ASC director Joseph Borg officially announced on Wednesday.Already facing a cease and desist order from the New Jersey Bureau of Securities, BlockFi now has 28 days to provide cause why the platform should not be forced to cease....
New Jersey, Texas, and Alabama have individual state regulators issuing concerns that New Jersey-based DeFi firm, BlockFi, is offering unregistered securities. Regulators seem to particularly point to BlockFi’s Interest Account (BIA), which offers rates that consumers are now becoming accustomed to in DeFi – but that have blown traditional banking rates out of the water. The ‘Unusual Three’ Crypto in it’s relatively early emergence in discussions around regulation and broader adoption, has largely been considered a somewhat bipartisan topic. Which makes the....
Earlier this year, crypto lending platform BlockFi started facing the heat from state regulators in New Jersey, Texas, and Alabama. Other states have joined the fold since then, as well. Celsius this week is now facing similar cease and desist demands from all three of the same states that BlockFi first faced. Let’s take a look at what we know thus far, and what it could potentially mean for DeFi moving forward. Regulators Reach: What Celsius Is Facing It’s becoming quickly apparent that Celsius is joining the fight in facing regulators in the same vein that BlockFi has. On....
The Texas State Securities Board enforcement director downloaded an FTX Trading app – not an FTX US app – in Texas using his own information and was able to earn interest on it. The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) filed a supplemental declaration Oct. 14 in the Voyager Digital case in which it stated that the SSB is investigating FTX Trading, FTX US and their principals, including co-founder and CEO Sam Bankman-Fried, for allegedly offering unregistered securities in the United States. FTX US won the auction for the remaining Voyager Digital....