Cryptocurrency

BlockFi To Pay Iowa Nearly $1M USD For Offering An Unregistered Security

Just a month after the crypto lending platform settled with the SEC.

Cryptocurrency

BlockFi To Pay Iowa Nearly $1M USD For Offering An Unregistered Security

Just a month after the crypto lending platform settled with the SEC.

On Tuesday, June 14, BlockFi was issued a fine of nearly $1 million USD by Iowa’s Insurance Division in response to the crypto lending platform offering and selling unregistered securities in the state.

The charge is part of a broader multi-state case involving the SEC in which BlockFi is said to pay $100 million USD in fines. The charges come as a result of BlockFi’s unregulated and in some cases reportedly unregistered security offerings in the form of high-interest cryptocurrency products. These offerings once allowed users to loan out their crypto and receive rewards on the assets, BlockFi has since reportedly closed these offerings in the US.

“While innovations, like cryptocurrencies, may provide for growth and evolution in the financial system, it is important that regulators ensure this occurs within an appropriate framework that protects investors while still facilitating responsible capital formation,” said Iowa Insurance Commissioner Doug Ommen, adding that Iowa specifically has set up a hotline that residents can call if they are uncertain of any assets registration status with the state.

The fines are not the only challenges BlockFi has faced this week, on Monday, June 13, the lending platform announced that it had laid off roughly 20% of its staff as a result of the current financial climate — a decision that has also been made by top exchanges like Coinbase and Gemini.

Elsewhere in Web3, Blockchain.com plans to offer its users free NFT  domain names.

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