BlockFi to Pay $100 Million in Penalties

BlockFi, the noted crypto lender, could pay up to $100 million in penalties to settle investigations that have targeted its crypto interest accounts. According to reporting from Bloomberg, BlockFi will be required to pay a $50 million fine to the SEC and another $50 to interested states such as New Jersey, Texas, Kentucky, Alabama, and Vermont. Additionally, these penalties are among the highest ever charged against a cryptocurrency firm. Moreover, BlockFi will likely not be allowed to offer interest-yielding accounts to American citizens in the future. But, why does it matter? It appears that the firm was, “illegally offering a product that pays customers high-interest rates to lend out their digital tokens,” which almost amounted to a security. While BlockFi CEO Zac Prince was adamant in his defense of the program, the firm ultimately could not ward off scrutiny from the SEC. At press time, popular cryptocurrencies like Cardano were up slightly, with Cardano rising nearly 4% to $1.09.