Sumary of 3 states have cracked down on crypto lender BlockFi as the company's interest accounts draw scrutiny:
- Chukrut Budrul/SOPA Images/LightRocket via Getty Images Three US states have said cryptocurrency platform BlockFi’s Interest Accounts may be a security under state regulation.
- New Jersey, Alabama, and Texas said the crypto platform did not register its BlockFi Interest Accounts with regulators.
- BlockFi CEO Zac Prince says that the interest-bearing accounts are lawful.
- Three US states have said cryptocurrency platform BlockFi may have violated securities law by offering its interest-bearing accounts within their jurisdictions.
- All three states – New Jersey, Alabama, and Texas – said the cryptocurrency platform did not register its BlockFi Interest Accounts, or BIAs, with the respective state regulators, and that they may be unregistered securities offerings.
- On July 20, New Jersey issued a summary cease and desist order banning BlockFi from selling unregistered securities through its BIAs and to stop accepting new BIAs in the state.