The crypto platform agreed to pay the SEC $50 million to settle the charges without denying or admitting to the act. BlockFi will also pay another $50 million to 32 states over similar charges.
“This is the first case of its kind with respect to crypto lending platforms,” SEC Chair Gary Gensler said. “Today’s settlement makes clear that crypto markets must comply with time-tested securities laws.”
“From the day we started BlockFi, we have always known that strong engagement with regulators would be critical for the adoption of financial services powered by cryptocurrencies,” BlockFi CEO and founder Zac Prince said in a statement.
“Today’s milestone is yet another example of our pioneering efforts in securing regulatory clarity for the broader industry and our clients, just as we did for our first product – the crypto-backed loan,” he added.
The SEC also warned other cryptocurrency lenders that offer services similar to BlockFi’s, with Gurbir S. Grewal, director of the agency’s enforcement division, saying they “should take immediate notice of today’s resolution and come into compliance with the federal securities laws.”
