No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaUS Regulator Announces $100 mn Fine on Crypto Lender

US Regulator Announces $100 mn Fine on Crypto Lender

US securities regulators on Monday announced that cryptocurrency lending platform BlockFi will pay $100 million in penalties to settle lawsuits about its business scheme.

The first-ever such case came as the Securities and Exchange Commission (SEC) looks to establish regulatory authority over digital currency services, treating them more like investment operations than a form of money.

“This is the first such case involving crypto lending platforms,” SEC chair Gary Gensler said in a release. “Today’s agreement makes it clear that cryptocurrency markets must comply with securities laws.”Gensler has stepped up scrutiny of the cryptocurrency market since joining the SEC less than a year ago. According to a study by Cornerstone Research, the penalty is the highest since it began tracking lawsuits in the sector in 2013.

For about two years, BlockFi has provided a service in which people lend it crypto assets in exchange for monthly interest payments, according to the SEC order.

The crypto-lending scheme attracted some 600,000 investors, according to the order.

Regulators determined in a “first-of-its-kind action” that the service known as BlockFi Interest Accounts were not registered with the SEC, as required.

BlockFi agreed to pay $50 million to the SEC, according to the order.

The company also agreed to pay another $50 million to a group of 32 US states that filed lawsuits calling for it to stop offering the accounts, which had interest rates as high as eight percent, according to regulators.

Without admitting any wrongdoing, BlockFi agreed to stop selling the interest accounts in the United States and to abide by SEC registration and anti-fraud rules, according to regulators.

Trending Now

Costa Rica’s Blue Carpet event unites Leaders for Ocean Innovation and Tourism

On Friday, the Costa Rican Fishing Federation (FECOP) held the second edition of La Alfombra Azul, an event created to celebrate innovation, science, and...

U.S. Strikes Drug Boat in Pacific Near Colombia, Killing Two

The United States military carried out its first strike in the Pacific Ocean against a boat suspected of drug trafficking, killing two people near...

Costa Rica Shaken by a Quake with No Injuries Reported

A strong earthquake struck near Quepos late last night, sending tremors across parts of our country and even into our neighbor Panama. The quake,...

How to Grow Broccoli Successfully in Costa Rica’s Highlands

In Costa Rica's cooler highland regions, home gardeners harvest fresh broccoli that brings a distinct flavor to everyday meals. This vegetable packs vitamins A,...

Costa Rica Warns on Methanol Risks in Alcohol Amid Regional Outbreaks

Costa Rica's health officials have stepped up alerts on the dangers of methanol poisoning from contaminated alcohol, aligning with similar actions across Latin America...

Costa Rica OIJ Arrests Human Trafficking Ring Exploiting Minors

The Judicial Investigation Agency (OIJ) dismantled a gang dedicated to human trafficking for the sexual exploitation of minors after carrying out 19 simultaneous raids...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica