Financial watchdog of Vermont has joined a group of regulators who publicly accused BlockFi of violating securities law. According to BlockFi, securities regulators in Texas, Alabama and Vermont have issued orders regarding the issue.
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However, as of press time, the official website of Vermont's department of financial regulation has not published any official accusation.
Vermont's move comes after the Alabama Securities Commission issued a show cause order to BlockFi. According to an official press release, the New Jersey-based cryptocurrency firm has 28 days to explain "why they should not be directed to cease and desist from selling unregistered securities in Alabama."
The New Jersey watchdog believes that the company has been funding its business at least partly through the sale of unregistered securities. Hence, the watchdog assumes the company violated relevant securities laws.
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