BlockFi to Pay $100 Million Over Crypto Lending Platform

On February 14, 2022, the SEC announced charges against BlockFi Lending LLC – a New Jersey-based cryptocurrency lending platform – for failing to register its crypto lending product and violating the Investment Company Act of 1940. BlockFi agreed to a settlement in which it will pay a $50 million penalty, cease unregistered offers and sales of its lending product, and attempt to bring its business in compliance with the Investment Company Act within sixty (60) days. Additionally, BlockFi agreed to pay $50 million in fines to 32 states to settle similar charges.