SEC Aims at BlockFi Over High-Yield Crypto Accounts: Report
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The US Securities and Exchange Commission (SEC) is reportedly investigating BlockFi over its product that pays customers high interest rates for lending out cryptocurrency.

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According to Bloomberg, the watchdog is trying to find out whether the company's accounts are akin to securities. However, officially the SEC has not accused BlockFi of any wrongdoing. This is not the first time the New Jersey-based cryptocurrency lending company comes under scrutiny.

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As iHodl reported, the New Jersey Bureau of Securities called for BlockFi to stop accepting new clients residing in New Jersey as the company has been funding its business at least partly through the sale of unregistered securities. Hence, the New Jersey Bureau of Securities assumes the company violated relevant securities laws. Shortly after the accusations, other financial regulators also issued warnings against BlockFi.

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