US Based Crypto Lending Platform Faces $100 Million Sanction!

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Crypto lending platform BlockFi has agreed to pay $100 million to settle ongoing investigations with multiple regulatory agencies, especially the US Securities and Exchange Commission (SEC), according to Bloomberg’s report. In a statement on its official Twitter account, BlockFi announced that they are in dialogue with regulatory authorities and customers can continue to use the platform.

Bloomberg: BlockFi Accepts $100M Payment

BlockFi, which has a business model that allows its customers to save cryptocurrencies such as BTC, ETH and USDT, and earn interest income from the platform with these cryptocurrencies, faced various allegations from the SEC in late 2021. The SEC claimed that these BlockFi interest accounts, which could yield between 5% and 10% in November 2021, are unregistered securities. In addition, BlockFi has received several requests from five different local regulatory bodies other than the SEC to stop offering products.

Crypto Lending Platforms Face Regulators

Many crypto lending platforms, including Celsius, have faced both local and federal regulators lately. Additionally, the US-based cryptocurrency exchange Coinbase has also canceled the lend product that the SEC was planning to launch soon after the warnings.

In a statement on its Twitter account, BlockFi announced that they are in dialogue with regulatory authorities and that customers can continue to use the platform.

While there is no official clarity on the $100 million settlement in question, as Bloomberg reports, this will be one of the biggest sanctions crypto companies have ever faced.