BlockFi confirms Penalty Imposed by SEC

Crypto-lending platform BlockFi has agreed to pay $100 million (about Rs 755 crore) to settle an investigation by the US Securities and Exchange Commission and state regulators from several states. BlockFi was alleged to have misinformed its depositors about its risk while explaining the fines imposed by the regulators. This is the largest ever fine against a cryptocurrency firm. "BlockFi made a false statement to BIA (BlockFi Interest Account) investors regarding the level of risk in their loan portfolio loan portfolio," said the order by SEC secretary Vanessa Countryman. He said, "BlockFi made a statement in several website posts that the company's institutional loans were 'generally' over-collateralized, while in reality, most loans were not." BlockFi has issued a press release confirming the fine imposed by the SEC. However, the company has not accepted or rejected the SEC's findings.