Christopher Giancarlo, a former chairman of the US Commodity Futures Trading Commission (CFTC), has left BlockFi as the company came under scrutiny over its interest accounts (BIA).
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The company said in a press release Ellen-Blair Chube, a Managing Director and Client Service Officer at William Blair, will replace Giancarlo, who will continue to provide "strategic counsel to the firm in an advisory role."
"So many of the crypto-firsts have been pioneered by this organization, and I am excited to count myself as part of the Board that will support BlockFi's mission of financial inclusion, continued innovation and the next tranche of industry firsts that are to come," said Chube.
Giancarlo reassigns from the board of the lending firm just after four months on the role. He leaves his position as several US regulators warned that BlockFi might be violating securities laws over its BIA business. BlockFi CEO, Zac Prince, said earlier that the firm received an order from the New Jersey Bureau of Securities regarding BIA operations in the State of New Jersey. He notes the service remains "fully operational" for its existing customers in New Jersey.
The New Jersey watchdog — and several others — calls for BlockFi to stop accepting new BlockFi Interest Account clients residing in New Jersey. According to the regulator, the company has been funding its business at least partly through the sale of unregistered securities. As of press time, the New Jersey watchdog has once again decided to postpone its previous order to September 30, the firm wrote on Twitter.
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