HomeCryptoBlockFi relaunches its crypto product after paying fine to SEC

BlockFi relaunches its crypto product after paying fine to SEC

The crypto lending platform, BlockFi, has finally paid its $100 million fine with the Securities and Exchange Commission (SEC) and is now ready to relaunch its crypto Yield. 

At the moment, the product is limited to accredited investors only. The news came via a tweet from BlockFi on 7 November. 

SEC’s $100 million fine on BlockFi

9 months ago, BlockFi was forced to stop offering the product after being accused by the SEC of failing to register it. The matter was resolved after paying a fine of $100 million. 

It was the first such case for the Securities and Exchange Commission. SEC Chairman Gary Gensler also said that the case at the time was unique, but that it would serve as a warning to the rest of the crypto market. 

The SEC has increased security and market monitoring measures, with the hope that the entire crypto ecosystem will stand on its regulatory footing. 

At the moment, however, the US stock exchange authority is conducting several investigations for the same reason as BlockFi.

Crypto platform relaunches Yield, but not for everyone

“As we continue to diligently work towards registration with the SEC for a public offering for BlockFi Yield, we are delighted to share that U.S. clients verified as accredited investors will soon be able to earn interest on digital assets at BlockFi.”

BlockFi recently announced that only US customers verified as accredited investors will be able to earn and take advantage of BlockFi Yield.

This opportunity will be available in beta for some customers by the end of 2022 and for all customers in early 2023. 

Those who will benefit from the BlockFi Yield platform will have many exciting new aspects to use, including: 

  • Competitive interest rates on digital resources;
  • Access to 15 digital resources;
  • Ability to trade and earn interest on digital resources at the same time; 
  • No minimum investment.

The words of Flori Marquez, founder and CEO of BlockFi:

“A foundational pillar of BlockFi is to be client-centric and serve as a stabilizing industry force. We are proud to be one of the battle-tested organizations that are still serving their clients, listening to their needs and evolving as we continue to support their digital asset journey.”

Earlier this year, BlockFi faced a rapid downturn in the cryptocurrency markets and laid off 20% of its staff. It also entered into an agreement with FTX in which the crypto exchange provided BlockFi with a $400 million line of credit and in return obtained an option to buy BlockFi.

The purchase price reportedly depended on certain performance milestones, including SEC approval of this new product of interest, which would raise the purchase price by $25 million. 

Will another platform soon be in the hands of Sam B. Fried?